1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KATRIN_1 [288]
3 years ago
15

Venture capital (VC) firms are pools of private capital that typically invest in small, fast-growing companies that can't raise

funds through other means. In exchange for this financing, VCs receive a share of a company's equity, and the founders of the firm typically stay on and continue to manage the company. A VC firm wants management to focus on improving , while the managers may also act to increase . VC investments have two typical components:_______.
(1) managers maintain some ownership in the company and often earn additional equity if the company performs well;


(2) VCs demand seats on the company's board. Management ownership serves to the alignment of the incentives of managers with the incentives of owners.
Business
1 answer:
sergey [27]3 years ago
4 0

Answera dnd Explanation:

A. The incentive conflict in principal-agent relationship as it concerns venture capitalism is conflict between venture capitalists who are the principals and the managers of the business investment who are the agents. The conflict is that venture capitalists are put to increase value of their investment and make profit while salaried managers are only out to feel their pockets through their managerial role in the company as they do not have an interest in the company and are unaffected by the loss or failure of the company. This is known as the principal agent moral hazard issue in venture capitalism

B. By managers maintaining some ownership in the company, there us reduced conflict as managers now see a reason to make sure company succeeds since they have an interest

Venture capitalists aim to have a seat in the board to make sure managers do not take bad decisions since they are able to veto such decisions

You might be interested in
As a student, you are able to earn extra money by assisting your neighbors with odd jobs. If you charged $10.25 an hour for your
PtichkaEL [24]

Answer:

822 hours

Explanation:

The charge per hour is $10.25.

To earn a total of $8,425,  one need to work ? hours.

1 hr =$10.25

? hrs = $8,425

?hrs = $8,425 / $10.25

=821.951

=822 hours

7 0
2 years ago
Identify and briefly discuss five major factors that complicate financial management in multinational firms. Also share any pers
Archy [21]

The five major factors that complicate financial management are:

  1. Difference in currency
  2. Different language and culture
  3. Government laws
  4. Political risk
  5. Different economic and legal systems

<h3>Financial Management</h3>

Financial Management is the application of general principles of management to the day to day business transactions of an organization.

The five major factors that complicate financial management are:

  1. Difference in currency between the countries that the firms have business at.
  2. Different language and culture: Every country have their own unique culture and language.
  3. Government laws
  4. Political risk
  5. Different economic and legal systems

Find out more on Financial Management at: brainly.com/question/989344

4 0
2 years ago
The percentage of families with incomes below the poverty line: a. is defined as the 10 percent of U.S.households with the lowes
Dmitriy789 [7]

Answer:

The answer is: A) Is defined as the 10 percent of U.S. households with the lowest incomes.

Explanation:

The poverty line (or poverty threshold) classifies people into poor or non-poor. If someone earns an income below that limit (poverty line) they are classified as poor. Usually this line or threshold is established as the smallest amount of money a person needs to live on.

So if a person is classified as poor, since they shouldn't be able to live solely on their income, they can request the assistance of government programs (e.g. Medicaid, food stamps).

8 0
3 years ago
What common misconseptions about paying taxes exist? check all that apply​
11Alexandr11 [23.1K]

Answer:

The answer is:

1.A person who is unable to pay taxes does not have to pay them.

If you unable to pay your taxes, the amount of payment that you have to pay this year would be accumulated to the tax payment next year.

2.A person who chooses not to pay taxes does not have to pay them.

Paying taxes is an obligation of all working citizens, not a right. We do not get to choose whether we have to pay taxes or not.

3.Simply forgetting to file taxes will not result in jail time.

Since there is no actual intend to not paying your taxes, simply forgetting it usually would only resulted in fines from the IRS.

8 0
3 years ago
Sandy borrows Mike's car for the weekend. The car gets a flat tire, so Sandy purchases a new one. Mike now owns the new tire. Th
Law Incorporation [45]
<span>Sandy purchased a new tire for Mike's car because it got a flat tire while she had borrowed it for the weekend. The method of Mike acquiring ownership for the new tire is called transferring.</span>
6 0
3 years ago
Other questions:
  • In the context of the six sections of the Position Analysis Questionnaire (PAQ), _____ represent the reasoning, decision-making,
    9·1 answer
  • True or false: the term economic investment includes purchasing stocks, bonds, and real estate.
    12·1 answer
  • Which documents are necessary to calculate ros?
    5·1 answer
  • Which phase of the new product development process involves identifying the target​ market, estimating its​ size, and determinin
    13·1 answer
  • f Italy can produce 100,000 more pounds of chocolate every year by forgoing the production of 200,000 pounds of pasta, what is t
    6·1 answer
  • ________ is used heavily when introducing a new product category. the objective is to build primary demand.
    11·1 answer
  • Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $49,0
    9·1 answer
  • A company wishes to hedge its exposure to a new fuel whose price changes have a 0.6 correlation with gasoline futures price chan
    14·1 answer
  • A perfectly competitive small organic farm that produces 1,000 cauliflower heads in the short run has an ATC = $6 and AFC = $2.
    15·1 answer
  • Jeffries &amp; Sons is borrowing $95,000 for four years at an APR of 7.05 percent. The principal is to be repaid in equal annual
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!