Most nonprofit parent ventures that establish a for-profit subsidiary own 100 percent of the stock of that subsidiary and thus control the latter's board of directors so both entities can share the same board.

Question

Quizplus · Accepted Answer

While nonprofit parent ventures often own a significant portion of the stock of a for-profit subsidiary, they do not always own 100 percent. The control of the board of directors and the sharing of board members between the nonprofit parent and the for-profit subsidiary can vary based on the specific governance structure and legal requirements, and it is not a given that both entities will share the same board.

Most Nonprofit Parent Ventures That Establish a For-Profit Subsidiary Own