Problem:
Entrepreneurs run into difficulty or barriers to a successful business launch when they skip over basic steps or considerations that should be included in their business plan. The purpose of this guide is to discuss some of these pitfalls and to provide answers that these barriers pose. Specifically, the discussion will include what is a founder's agreement, a description of the purpose and importance of a buyback clause, and the steps an entrepreneurial organization can take to build a strong ethical culture. Finally, if the entrepreneur decides to incorporate, what is the corporate veil, and how can it be pierced?
What is a founders' agreement? Describe the purpose of a buyback clause and why it's important. List and explain four (4) steps entrepreneurs can take to avoid legal disputes. List and briefly describe three (3) specific steps that an entrepreneurial organization can take to build a strong ethical culture. What is meant by the term "piercing the corporate veil"? How can the corporate veil be pierced?