Entrepreneurship essay

Name Course Lecturer Date What is a founders' agreement There are different agreements regarding on what is been agreed on, and the future affect on the ownership of the property. Founder agreement on it own, is the agreement betwixt the parties and it`s also referred as buy-sell agreement. A buy-sell agreement is termed as a contract used to secure the future of a closely-held business. In this agreement, it`s possible for the founders to determine what will happen to the ownership interest in case one of the founders dies disability effects, retirement or in case one decides to withdraw from the business. It is vital to have the founder`s agreement at the venture of every business. For instance, in a situation where there are multiple founders, it is vital for the founders to consider and address a potential issue that may arise during the life of the business since if they fail to do that, there may be difficult and as well expensive at the time of amendment. Describe the purpose of a buyback clause and why it's important When it comes to the description of the buyback purpose, it is crucial to note that this process to repurchase the outstanding shares by a company with an aim of reducing the numb of shares on the market. This process is known to allow the company to invest in themselves as it reduces the number of shares the outstanding on the market. On the other hand, buyback is fundamental as it make it possible for the company to buy back the shares while this may either increase the value of shares available by reducing supply or on the other hand, it helps eliminating threats to those share holders who aim on have control of the company. List and explain four (4) steps entrepreneurs can take to avoid legal disputes Legal dispute is simply disagreement over the survival of a duty or right, or it might be over the extent and kind of compensation that may be claimed by the affected party for a breach of such duty or right. Disputes are known to occur whenever there is disagreement of the parties involved. It is a known fact that most disputes in business law happens over contracts of business, and they most happen whenever there is disagreement on crucial issues or a times when a payment of a certain thing is not made. As known to many, stating a new business is an ow some event and to some extent its so exciting that someone may even forget of considering the basic first steps before venturing into the business. The following are some of the steps that entrepreneurs should consider for them to avoid legal disputes. Incorporate Early In this case, when one is found in a situation where incorporation provides valuable protection For instance, in case a business is incorporated, personal assets have protection in the event the company is been sued by a creditor or client, and...