BLU4B - Incorporation vs. Private Equity for AI Startups

BLU4B - Corporations

Student Objectives (NBEA Standards):

1. Identify and classify different types of corporations.
2. Explain corporate structure and governance roles.
3. Analyze the impact of shareholder rights and liability on businesses.
4. Outline the incorporation process and its legal implications.
5. Evaluate the regulatory compliance requirements for raising capital.

This case study explores the legal and financial considerations an entrepreneur faces when deciding between incorporation and private equity funding. Students will analyze business structures, shareholder rights, governance, and compliance regulations. The case provides real-world applications through a startup scenario and includes assessment questions, discussion prompts, and legal precedents.

• Focus: Business structures, capital raising, governance, and legal compliance
• Teaching Tools: Case study, discussion questions, real-world legal precedents
• Key Learning Areas: Corporate structure, shareholder rights, regulatory compliance