Advisory Board Members Usually Obtain What Percentage of Stock in a Venture

question 17

Multiple Choice

Advisory board members usually obtain what percentage of stock in a venture?

• A) .1-.2%
• B) 5%
• C) 1-2%
• D) 1.5%

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Definitions:

Trading Securities

Financial assets that a company holds primarily for the purpose of selling them in the short term to profit from market price changes.

Unrealized Gains

Increases in the value of assets that have not yet been sold and therefore not turned into cash.

Historical Cost

The original purchase price or cost of acquiring an asset, not adjusted for inflation or market changes.

Equity Method

An accounting technique used to record investments in other companies, recognizing the investor's share of the investee's net income.