Exit Strategies and Legal Issues (Essay Sample)
For this assignment you will be directing your attention to the legal aspects of your proposed new business. There are a huge number of legal issues to think about such as the ownership structure of your business, how to protect yourself from lawsuits, what types of insurance to get, and many other issues that add complexity to the process of starting a business.
Also, consider your “end game” for your business. Remember, it will be easier to get financing for your business if you can convince your investors that there is a pot of gold somewhere in the near future. Do you think you can take your business public someday? Is there a large competitor who might be interested in buying your business some day? These are all issues to consider.
Carefully review the background materials on the exit strategies and legal issues, then write a 2- to 3-page paper addressing the following issues:
- What kind of legal structure do you think is best for your business? Consider all the major options discussed in Chapter 7 of Pinson and Jinnett (2006) and the Pearson tutorials, and then justify and explain your choice.
- What legal risks do you think your business might face and what strategies (such as insurance) will you use to address these potential risks? Review Chapter 14 of Pinson and Jinnett (2006) and use their information to help think about your answer.
- How long do you plan on owning and operating your business before your exit strategy?
- What will your exit strategy be? Explain your reasoning and make sure to cite Hawkey (2002) and the Pearson tutorials as part of your answer.
SLP Assignment Expectations
- Answer the assignment questions directly.
- Stay focused on the precise assignment questions; don’t go off on tangents or devote a lot of space to summarizing general background materials.
- List supporting references and cite sources in proper format.
- Use appropriate writing style in essay form (organization, grammar, and spelling).
- Review our “Writing Style Guide” for more detail on referencing and writing expectations. This guide is found under “My Resources” in the TLC Portal.
Exit Strategies and Legal Issues
During the planning stage of every business venture, the entrepreneur should choose the legal structure that is best suited for their organization's needs. The business owners should decide on the best business structure, which should be informed by the liability concerns associated with the company and the best tax model for the endeavor (Pinson, 2014). The various examples of business legal structures include partnership, company, corporation, limited partnership, sole-proprietorship and S-corporation.
Sinclair Students Business Incubator Program Legal Structure
The Sinclair incubation program will have a Company business structure. According to the law, a company is a separate legal entity distinct from its officers or shareholders. There are two types of company business structures that the program can choose from, which include propriety limited companies and public companies. The first structure does not allow the business owners to borrow or raise money from the public via share iss...
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