What Two Questions Should Be Asked When Considering Founding Team

question 34

Multiple Choice

What two questions should be asked when considering founding team members?

• A)Can I build the company without them? Can I find someone else like them?
• B)Can I build the company without them? What conflicts would they have in joining the team?
• C)How well will they support my vision of the company? How many people have similar skills?
• D)How strong is their loyalty to the company? How loyal will they be to me?

---

Definitions:

CCA Rate

The Capital Cost Allowance (CCA) rate refers to the percentage rate at which a business can claim depreciation on certain property types for tax purposes in Canada.

Net Advantage to Leasing

This is a calculation used to determine if leasing an asset is a more cost-effective option than purchasing it outright, taking into account all the costs and benefits associated with leasing.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an even manner.

Depreciation Tax Shield

The tax savings achieved by a company from the deductible expenses of depreciation, reducing its taxable income.