Question

If a patent lawyer works for a startup without cash compensation, but receives instead shares in the presumably soon-to-be-successful enterprise, she is working for _____.
1.gift cards
2.sweat equity
3.pro bono
4.none of the above

Answer 1

1 or 2 mmight be the right answers but please let me know if im wrong

Answer 2

Answer:

Sweat equity

Explanation:

Sweat equity is a form of reward agreement where employees are compensated with value enhancing action like share stock instead of monetary payment.

It is most practiced by new set ups that are sill not having adequate liquidity for business operation.

In order to avoid dispute , it is advised that the capital infusion and the value of the sweat equity in the  agreement be properly documented