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A governing agreement is crucial in business to address disputes and protect fiduciary duties. Without clear rules in place, conflicts among partners can escalate, leading to legal action and potential harm to the company. Just like in a sporting event, where a teammate intentionally harms others for personal gain, a lack of governing agreement can leave a business vulnerable to internal strife and external lawsuits. It is essential for all parties involved in a business venture to have a clear understanding of their rights, responsibilities, and obligations to prevent misunderstandings and ensure the success of the enterprise.