Enterprise Law > CASE STUDY > DeVry University, Keller Graduate School of Management ENTR 510 WEEK 7 LATEST OF MAY 2021 WITH ASSS (All)

DeVry University, Keller Graduate School of Management ENTR 510 WEEK 7 LATEST OF MAY 2021 WITH ASSSURED GRADE A+

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DeVry University, Keller Graduate School of Management ENTR 510 WEEK 7 LATEST OF MAY 2021 WITH ASSSURED GRADE A+ What should you be concerned about as an entrepreneur? In reviewing the sample... term sheet for the XYZ Company, as an entrepreneur, my concerns would be the profitability of the company and anything that would affect that profitability. In this case, concerns would be the provision explaining redemption of shares as well as the dividend provision. Another concern would be the conversion of shares from preferred shares to common shares. This is a concern because any entrepreneur would want to avoid losing the money they invested in the event of the liquidation of the company or a public offering. In the event of liquidation, the ordinary shareholders are paid last; this means that the entrepreneur may not get paid. What do you think the investors are concerned about? In regards to the concerns for the investors in the XYZ Company, they face greater risks than shareholders do. Investors, who can also preferred stock holders, would be concerned with the information rights provision. This provision would enable them to have access to a company’s financial statements. This information will assist them in the evaluation of its performance and in making buying or selling stock decisions. Voting rights would also be a concern. As preferred stock holders, investors would have the privilege of being involved in the election of company officials, as well as being involved in making business decisions that will affect the company’s profitability. [Show More]

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