You Make the Call-Situation 2

question 34

Essay

You Make the Call-Situation 2
Carter Dalton is well on his way to starting a new venture-Max, Inc. He has projected a need for $350,000 in initial capital. He plans to invest $150,000 himself and either borrow the additional $200,000 or find a partner who will buy stock in the company. If Dalton borrows the money, the interest rate will be 6 percent. If, on the other hand, another equity investor is found, he expects to have to give up 60 percent of the company's stock. Dalton has forecasted earnings of about 16 percent in operating income on the firm's total assets.

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Definitions:

Overcoming Resistance

The process of addressing and mitigating opposition or reluctance, particularly in the context of change management or innovation adoption.

Prevention

An approach or action taken to stop something from happening or arising.

Dysfunctional Conflict

Conflict that disrupts the harmony in the organization, detracting from its goals and negatively impacting performance.

Growing Self-Doubt

An increasing feeling of uncertainty about one's capabilities, decisions, or qualities, potentially impacting personal or professional growth.