A ________ is a written document that deals with issues such as the relative split of the equity among the founders of the firm, how individual founders will be compensated for the cash or the "sweat equity" they put into the firm, and how long the founder will have to remain with the firm for their shares to fully vest.
A) entrepreneurs' agreement
B) creators' agreement
C) founders' agreement
D) initiators' agreement
E) originators' agreement

Question

Quizplus · Accepted Answer

A founders' agreement is a written document that deals with issues such as the split of equity among the founders, compensation for the work put into the firm, and vesting periods for shares. The other answer choices are not commonly used terms for this type of agreement.

A ________ Is a Written Document That Deals with Issues