Understanding Term Sheets

1. Understanding Term Sheets

What does an entrepreneur need to do before even trying for a formal term sheet? Identify the actions? Respond to two of your
classmates’ postings.

2. Reward Equity

Incentive problems arise in the course of the firm’s operations. Firm managers have many opportunities to take actions that benefit
themselves at the expense of outside investors. What actions can outside investors take to ensure reward equity? Respond to two of
your classmates’ postings.

1. Understanding Term Sheets

What does an entrepreneur need to do before even trying for a formal term sheet? Identify the actions? Respond to two of your
classmates’ postings.

2. Reward Equity

Incentive problems arise in the course of the firm’s operations. Firm managers have many opportunities to take actions that benefit
themselves at the expense of outside investors. What actions can outside investors take to ensure reward equity? Respond to two of
your classmates’ postings.