When Selecting Board Members,it Is Advised That

question 20

Multiple Choice

When selecting board members,it is advised that

• A)candidates be subjected to background checks
• B)they have senior level executive positions in the industry
• C)they be willing to commit to the venture's mission
• D)they be close friends of relatives of the entrepreneur

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Definitions:

Cash Flow

The amount of cash and cash equivalents being transferred into and out of a business, indicating its liquidity position.

Net Present Value

Net present value (NPV) is the calculation used to find today’s value of a future stream of payments and earnings, accounting for the time value of money.

Cost of Capital

The return rate that a company must achieve in order to compensate its investors for the risk of the investment, including the cost of equity and debt.

Industrial Furnace

A device used in manufacturing to provide high temperatures for processes such as melting metals or chemical reactions.