Tutorial of Enterpreneur

Tutorial 8 (topic 7) Preparing A Proper Ethical And Legal Foundation Q1. In general, do entrepreneurs pitch to overestimate or underestimate their noesis of the laws that pertain to starting a new fuddled? What does answer to this question suggest that entrepreneurs do out front they start a firm? In general, entrepreneurs tend to overestimate their knowledge of the laws that pertain to starting a new firm. Before entrepreneurs start a firm, they should seek for lawyer to get some legal advice, get sources and culture close the business sector, refer to book, or search the in mixed bagation thru the internet about the legal issue that they face.Q2. pass what is meant by the terms code of take on and moral philosophy training course of instructions. What is their purpose? The term code of conduct is a titular direction of an organizations values on real ethical and companionable issues. Which means it is a set of formal statement for a firm or comp either to concern an d emphasis on the values on ethical and social issues. For example, value that an organization sojourn employee to carry out some task, the method on how employee serve customer, social responsibility for an organization, privacy, and others.Then, ethical motive training programs is teaching business ethnics to help employee look at with ethical dilemmas and improve their overall ethnical conduct. It means, ethics training program is a set of system or some courses that use to transmit employee betray with ethical dilemmas, which is a situation that employee involve some activities that is well(p) to whizself or the organization, but may be unethical. For example, an employee using companys computer to carry out new program, thus this may set an issue whether the new program is the property for an organization or the feature employee.Also, improve overall ethical conduct batch be by means of by implementing an ethics training program because it dope help employee to deal or response to ethical dilemma. The purpose for code of conduct and ethics training programs is to promote a healthy climate of business ethics and annul lawsuit in a firm. Also, the purpose is to establish a strong ethical culture and avoid litigation. Q3. Describe what a founders symmetricalness is and why its important for a team of entrepreneurs to deliver peerless in place when launching a venture. A founder commensurateness is a written that deals with issues such as the relative split of he equity among the founders of the firm, how individual founders will be compensated for the property or the sweat equity they put into the firm, and how long the founders will have to uphold with the firm for their sh bes to fully vest. It means founder agreement is a formal document that mention about the profit sharing between the founders by following the amount of sign investment between the founders. Items that include in a founders agreement are nature of the prospective busi ness, a outline business plan, legal form of business receiveership, buyback clause, description of the initial operating gravid and others.It is important for a team of entrepreneurs to have one in place when launching a venture because it can avoid the conflict such the problem between the founders regarding the profit sharing and scattering of stock at the end of the business, avoid litigation, and to know the expectation of their own role in the organization. Therefore, founders agreement is important to act as a set of rules or guideline while founders are conducting their business and it can reduce most of the issues that can harm the performance of a business. Q4. Describe the purpose of a non-disclosure agreement and the purpose of a non-compete agreement.Non-disclosure agreement is a legal document or contract sign between ii parties, which is restrict the access or by three caller. The purpose of a non-disclosure agreement is a promise made by an employee or provide r who does not disclose the trade secret between the firm to the third party or outsider. Also, a non-disclosure agreement is a contract through which the parties agree not to disclose information covered by the agreement. On the other hand, non-compete agreement is a contract between one party such as employee agrees not to pursue a similar handicraft or trade in competition against another party such as employer.The purpose of a non-compete agreement is to avoid the possibility that upon the result or resignation for an employee might begin working for a challenger firm or starting a new business which is related to or similar with the employers business in a special(prenominal) geographical area and time frame. Q5. What are the advantages and disadvantages of organizing a new firm as a fix proprietary? Is sole proprietorship an portion form of ownership for an fast-growing(a) entrepreneurial firm? Why or why not? The advantages of organizing as a sole proprietorship are b eing the simplest form of business tructure. Then, creating a sole proprietorship form is easy and inexpensive so a starting cost can be reduced, and then an owner maintains complete control of the business without any intervention in decision making, and profit is own retain by the owner, business losses can be deducted against the sole proprietors other sources of income, and the business is not subject to double assessation because the income realise by a sole proprietorship passes directly to the personal income tax return of the owner, and then business is easy to dissolve due to without any partners and complex agreement.Whereas, the disadvantages of a sole proprietorship are liability on the owners part is un control so if a business is facing deficit, owner is responsible for all the losses. Then, the business relies on the skills and abilities of a single owner in order to manage the business wisely. Furthermore, acme capital can be difficult because of only owner is ru n the business without any help from partners. Moreover, the business ends at the owners death or loss of interest in the business, the liquidity of the owners investment is low due to low capital and cash flow can be used in generating more profit.A sole proprietorship is not an appropriate form of ownership for an aggressive entrepreneurial firm. An aggressive firm will probably need to raise capital early in its life because it is important for an aggressive firm to have a huge amount of capital in competing the earlier submit in the market, thus it is not possible under the sole proprietorship form of ownership. Also, in an aggressive entrepreneurial firm will be taking more risk in the investment, hence a limited liability form of company is more suitable in an aggressive entrepreneurial firm, which owner can limit their personal losses.