The entrepreneur should decide on the legal form of organizing the new venture before asking for venture capital.

Question

Quizplus · Accepted Answer

It is important for entrepreneurs to choose a legal form of organization before seeking venture capital because the type of legal structure can impact the investment decision and affect the rights and roles of the investors. The venture capital firm will typically review the legal documents and agreements before investing, so it is important to have a clear and appropriate legal structure in place before seeking funding.

The Entrepreneur Should Decide on the Legal Form of Organizing