Explain,what actions can outside investors take to ensure reward equity?

What does an entrepreneur need to do before even trying for a formal term sheet?  Identify the actions.

Week 5 Discussion 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?

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