Three Ownership Interests Exist as an Entrepreneur
There are three distinct ownership interests with a closely held company. There is an economic expectation, a right to manage the company and right to hold the ownership position as an asset.
Ownership Interests
When an individual purchases or invests in a business, they purchase three distincts rights: 1) a right to manage the business, 2) a right to vote on business matters, and 3) a right to sell the ownership position as an asset. It does get more complicated than this, read Three Ownership Interests Exist when investing into a company.