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What is the importance of a company's legal structure/ownership section in the business plan?

A. It outlines the daily operations.
B. It defines the company's marketing strategy.
C. It describes the legal setup and equity distribution.
D. It details the financial projections.



Answer :

GinnyAnswer

Final answer:

The legal structure/ownership section of a business plan is crucial as it describes legal setup and equity distribution, impacts decision-making processes, and provides access to equity capital.


Explanation:

The importance of a company's legal structure/ownership section in the business plan lies in the fact that it:

  1. Describes the legal setup and equity distribution, outlining how the company is legally organized and how ownership shares are distributed.
  2. Impacts decision-making processes by specifying the rights and responsibilities of shareholders and other entities involved in contracts with the company.
  3. Provides access to equity capital through stock sales, helping in financing and ensuring the company's viability.

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