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

Evaluate the difficulty in assessing the reliability of different sources.

Recognize the importance of currency and other characteristics of reliable information.

Critically assess information from websites, forums, and blogs.

Understand the distinction between primary and secondary research.

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Definitions:

Financial Analysis

Financial Analysis involves evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.

Alternative Accounting Policies

Different methods and practices that a company can choose from to record its transactions and prepare its financial statements under the framework of accounting standards.

Other Comprehensive Income

Those revenues, expenses, gains, and losses under both GAAP and IFRS that are excluded from net income on the income statement.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or under-valued.