Most Founders' Agreements Include a ________ Clause, Which Legally Obligates

question 67

Multiple Choice

Most founders' agreements include a ________ clause, which legally obligates the departing founder to sell to the remaining founders his or her interest in the firm if the remaining founders are interested.

• A) redemption
• B) buyback
• C) statutory purchase
• D) voluntary recoup
• E) shareholder surrender

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Definitions:

Straight Rebuys

A purchasing situation in which a buyer reorders an existing product or service from the list of acceptable suppliers without seeking new information or investigating other suppliers.

Sales Rep

A professional responsible for selling a company’s products or services, often directly engaging with potential buyers to generate sales.

Straight Rebuy

A type of purchasing situation where a business reorders an existing product or service without any modifications.

Michelin Tire Company

A multinational tire manufacturer based in France known for its tire quality, safety innovations, and the Michelin Guide, which awards Michelin stars for excellence to a select few establishments.