Reference no: EM132065341
MINI CASE
Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones.
Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area, and eventually to go nationwide.
At some point. hopefully sooner rather than later, you plan to go public with an IPO, and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions.
a. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer.
b. If you expanded and hired additional people to help you, might that give rise to agency problems?
c. Suppose you need additional capital to expand and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur?
d. Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs?
The purpose of this assignment is to explain core concepts related to corporate valuation and governance and to identify strategies for conducting business with personal and professional integrity.
Read the Chapter 13 Mini Case on page 544 in Financial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions a through d.
Using the mini case information, write a 250-500 word letter of intent discussing specific strategies for how you will conduct your start-up business with personal and professional integrity.
APA format is not required, but solid academic writing is expected.
|
Environment and performance of industrial real estate
: Findings and Limitatons of the article The Environment and Performance of Industrial Real Estate.
|
|
How many of them are in your intended market
: There is a business plan to make a regular gym and it's offer personal workout rooms for people who have confidence issues at the gym.
|
|
Determine the basic and diluted earnings per share
: Determine the Basic and Diluted Earnings Per Share for Company X. All necessary Information is listed below.
|
|
What is the total direct labor variance of the company
: The management of Zeta Fire Alarms Company has calculated the following variances: What is the total direct labor variance of the company
|
|
What is an agency relationship
: If you expanded and hired additional people to help you, might that give rise to agency problems?
|
|
Discuss about the different types of power
: The employment of different types of power might influence a team member's satisfaction, and thus, his or her motivation to continue.
|
|
Calculate the company contribution margin ratio
: If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be
|
|
Discuss the factors leading to concentration in product
: Divide them into categories: technical, government, and business. List and discuss at least two factors in each category.
|
|
Define contextual factors and behavioral channels
: Design a table using three (3) of the six (6) contextual factors (e.g., environmental uncertainty, task uncertainty, error criticality, task structure.
|