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 Sherman (2012) 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 Pakroo and Stewart (2016) and the Pearson tutorials 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 cite Reuvid (2011) and the Pearson tutorials as part of your answer.