Solution-Describe the separation of ownership and control

Describe the separation of ownership and control

Reference no: EM13190187

A friend convinces you that she has a great idea for a business, and the two of you incorporate. You supply her with funds and let her make all of the executive decisions. Under the agreement you hold 30 percent of the firm's stock and your friend holds 70 percent.
Why should you ever put yourself into a position where your friend's decision will carry the day, whether you agree with her or not? What does this tell you about problems that allegedly stem from separation of ownership and control?

Reference no: EM13190187

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Describe the separation of ownership and control : A friend convinces you that she has a great idea for a business, and the two of you incorporate. You supply her with funds and let her make all of the executive decisions. Under the agreement you hold 30 percent of the firm's stock and your friend..

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Describe the separation of ownership and control

Reference no: EM13190187

Reference no: EM13190187

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