For this activity:

You will need The Internet and to write down your answers in your Mahara e-portfolio.

Friends of your family are having dinner in your home. The friends are interested in launching an entrepreneurial venture and expressing some of their views about doing so.

You have been asked to join the conversation given that you are pursuing a major in entrepreneurship at your local university. As it turns out, your family's friends are involved with two other couples who will join them as founders of the proposed venture. They indicate to you that the other couples have expressed a desire to establish a founder’s agreement as part of the launch effort. 

They also say though that they see no reason to establish such an agreement given that the three couples are close friends.

Question: What advice would you give your family friends about the position they are taking with the founder’s agreement?

In order to give good advice to show that your advice is grounded in fact, you should do some research. Use the internet to discover the reasons for establishing a founders’ agreement for a new business. You may want to look at any arguments for and against a founders’ agreement.

You should make sure that you use at least three sources when checking that a fact is correct. You should try and limit your sources to reputable websites such as news websites or sites that are maintained by well-known and respected organisations.  

Once you are sure you have reputable sources, then compile a list of positive factors and a list of drawbacks of a founders’ agreement. It might be useful to include a short explanation for each factor in case you are asked to explain your reasons.

Once you have your two lists and are happy with them, think about each side of the argument or debate and consider your advice.

Write a short paragraph and explain the advice you would provide to your family friends. Be sure to justify the advice you give with evidence from your research.