What Are the Disadvantages of Distributing Founder Shares Equally Among

question 10

Multiple Choice

What are the disadvantages of distributing founder shares equally among all co-founders?

• A) The lack of a primary shareholder slows down the decision making process
• B) CEO may be doing as much work as CEOs of comparable companies, but have less potential upside
• C) Such distribution makes unwanted acquisitions easy
• D) A and B
• E) A and C

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Definitions:

Spokesperson

A spokesperson is an individual appointed or designated to speak on behalf of an organization, group, or another person, particularly to the media or public.

Mediator

A neutral third-party who helps resolve disputes by facilitating communication between conflicting parties, aiming for a mutually acceptable agreement.

Organizational Change

The process through which a company or organization undergoes a transformation in its operations, structure, or culture to address internal and external challenges.

Mediator

An impartial individual or entity that intervenes in disputes or negotiations to facilitate an agreement or reconciliation between parties in conflict.