Description
Dilution of ownership is the price one usually has to pay to foster a high rate of growth. Entrepreneurs need to be ready to answer the following questions:
Would I rather have a 100% stake of a $250,000 firm, a 60% stake in a $1 million firm, or a 15% stake in a $10 million firm?
Argue for the advantages and disadvantages of each type of firm and consider the implication of your answer on the rate of growth and controlling interest in the firm. 2-3 simple paragraphs (I do not require 2-3 pages) in APA format with references and in text citations will do for this answer.
Explanation & Answer
Attached.
Running Head: VALUATION AND INVESTMENT
Valuation and Investment
Institution Affiliation
Date:
1
VALUATION AND INVESTMENT
2
Investments give the sponsors the capacity to influence managerial decisions, a
company’s plans as well as policies in a firm. Nevertheless, the proportion of proprietorship an
single person has in a corporation determines the level of control one has over other
shareholders. Having a 100% stake for instance, in a $250,000 firm gi...
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