In small business, control refers to the ability of the primary owner to exert his influence over the management and direction of the company. Often business novices confuse ownership with control; you may have ownership but it doesn’t mean you have control.

Shareholder Dynamics in Small Business

Shareholder Dynamics

The majority of small businesses are owned by a single individual. An additional pool is family owned or controlled. The balance usually involves friends or relatives that are passive in ownership. These forms of ownership create some interesting shareholder dynamics and if not thought out, can create some legal and financial issues in small business when a life changing event occurs. 

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