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
olga2289 [7]
3 years ago
8

Suppose three engineers come to you with a plan for a disruptive, yet-to-be developed software program that seems compelling. Th

ey are asking for $10 million, the amount they think they will need over the next three years to reach cash flow positive. They have a pitch deck that includes a proposed deal. They are offering you 25% of the company. The founders own the remaining 75%. You will buy common stock, and are entitled to one of four seats on the board of directors; they hold the other three seats. One slide in the deck contains a detailed prediction of the value of the company. If you invest $10 million, you will own shares that are worth at least $50 million at the end of the third year.
Required:
a. What do you think of this proposed deal?
b. What counteroffer would you make?
Business
1 answer:
Vitek1552 [10]3 years ago
8 0

Answer:

Explanation:

The Proposed bargain or deal is supportive of the business visionaries instead of the financial backer(investor) since all the capital is coming from the financial backer and the investor will be receiving just only 25% for the bargain or deal while he faces all the challenges posed or loss of capital. The business visionaries are not placing in any of their own personal capital but only their idea. They likewise have a bigger say in the administration of the business and the financial backer has no power over the choice since he conveys just 25% votes. Consequently, it's not a good bargain or deal for the financial backer considering the risk-reward ratio.

The counter-offer will include raising a proposed equity percent rate to half  (i.e 50%). In addition to that, the financial backer needs to demand another seat on the board with the goal that they have equivalent authority over the administration and its choices. The most reduced the financial backer can go down is equity of 40% stake.

You might be interested in
Jafina works for a Sunshine Manufacturing, where her team shares a machine and materials with another team that works a differen
Naily [24]

Answer: Pooled interdependence

Explanation:

Pooled interdependence is a loose organizational model in which each business unit carries out it's own separate functions, might not interact with the other units and does not depend on other units directly even though it contributes to the accomplishment of the organizational goals and success.

Pooled interdependence is often seen as the loosest form of interdependence in organizations. Although the departments may not interact directly and may not depend on each other directly in the pooled interdependence model, every department contributes it's own individual pieces to the achievement of the same overall puzzle.

This creates a blind, indirect dependence on each other and the performance of a department has an impact on others as a department's failures may lead to the failure of the entire organization.

5 0
2 years ago
Read 2 more answers
Ana offers Corey her vacuum cleaner for $300. Corey rejects the offer, so Ana promises to sell the vacuum cleaner to Abey. Howev
fenix001 [56]

Answer:

A

Explanation:

6 0
3 years ago
________ is a financial institution owned by investors that focuses on business customers, providing bank accounts along with sp
Virty [35]

Answer:

Commercial bank.

Explanation:

A commercial bank is a financial institution that provides financial services to the public such as offering loan services, accepting deposits, foreign exchange, providing bank accounts. They encourage savings and are good sources of finance to businesses and industry.

3 0
3 years ago
Which inventory method generally results in costs allocated to ending inventory that will approximate their current costs?
emmasim [6.3K]
Which inventory method generally results in costs allocated to ending inventory that will approximate their current costs? FIFO. The FIFO inventory method stands for first-in, first-out. This method allows businesses to keep track of their inventory on an old inventory out before the new inventory basis. The first out inventory is recorded as the first items sold even if they aren't exactly the oldest item.  
4 0
3 years ago
A trader enters into a short forward contract on 100 million yen. The forward exchange rate is$0.0090 per yen. How much does the
Helen [10]

Answer:idk

Explanation:idk

3 0
3 years ago
Other questions:
  • Steve is staying at a hotel while on business in Chicago, but he forgot to bring his ties. Who would he most likely turn to for
    8·2 answers
  • Which of the following is an advantage of consumer credit?
    10·1 answer
  • The beautyshop, a manufacturer of skin care products, uses only plant-based materials for its cosmetic products. it supports sev
    9·1 answer
  • Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average
    14·1 answer
  • The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would
    10·1 answer
  • Which is the best strategy for improving an essay that contains too many short sentences?
    14·1 answer
  • Whats an acrostic poem for economic
    7·1 answer
  • Match each of the following contract principles to the statement that best fits it: A. bargained-for exchange of value to the pa
    10·1 answer
  • On January 1, 2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salv
    9·1 answer
  • mcgraw hill A(n) ______ can help employees feel that they are doing something worthwhile and are part of something important and
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!