Identify the issues that must be contemplated before giving someone ownership rights in a company.
What will be an ideal response?
Giving someone ownership rights in the company is a serious decision that should receive very careful considerations. There are several things to contemplate before taking on an equity partner:Your investor, partner, or employee does not have to be an equal partner.Never bring someone in as an equity partner if that person can be hired to provide the same service, no matter how urgent the situation.Don't be locked into future compensation promises such as stock options. Instead, cash bonuses should be used whenever possible.Unless your company is founded as a team from the beginning, you need to establish that you are the owner before you bring on partners.
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Which of the following is true of an express agency?
A) The agency involved is allowed to have multiple agents if desired. B) The agency is implied from the conduct of the parties. C) The agency comes to effect when the principal ratifies an unauthorized act. D) The agency arises when a principal creates the appearance of an agency that does not exist.
Which of the following statements describes the letter of credit?
a. It is a bank's obligation to pay a sum of money. b. It is issued by a bank on behalf of its customer. c. It is usually irrevocable. d. All of the above
Gourmet Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Gourmet Farms be likely to use for its new product?
A. Intensive B. Selective C. Targeted D. Exclusive E. Premier
As of June 2013, the consolidated balance sheet of the Federal Reserve System included about ________ in assets
A) $3.5 trillion B) $2.0 trillion C) $1.5 trillion D) $500 billion