Chapter 4. Legal Structure and Equity Distribution
After studying this chapter, students should be able to:
▪ Examine a business as a distinct and separate entity from participants in the enterprise
▪ Understand the role of co-venturers in a business
▪ Define “limited liability”
▪ Differentiate between various forms of legal entity for structuring a business
▪ Describe the formalities of maintaining a limited liability status
▪ Characterize the nature of equity interest and its various forms
▪ Understand distribution of equity interest among founders of a venture
▪ Appreciate the role of employee stock options
Tech Venture Insight

Choice of Wrong Legal Structure Endangers Financial Health

A case that illustrates the distinction between limited and unlimited ...

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