Mastery Quiz: Founder’s Stock

Which of the following is NOT a purpose of stock vesting? (Select the best answer)

To determine how much stock each founder is allocated

Correct Incorrect Correct answer

To align the founders in their commitment and execution

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To provide a structural incentive to build the business value over time

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To avoid the “free rider” problem that often plagues startups

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Which of the following is true of founder’s stock?

It is a practical allocation of equity value amongst startup founders

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It is an effective tool in mapping out and motivating sustainable contributions by the key team members

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It is an appealing structural feature for investors

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All the above are true

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It is a good idea to issue an equal amount of founder’s stock to each founder.

True

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False

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