Advantages or disadvantages have on the rate of growth

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Question

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 you 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?

what are the advantages and disadvantages of have each level of stake in a firm? What implication would those advantages or disadvantages have on the rate of growth and controlling interest in the firm?

Reference no: EM132335038

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