You Are the Founder of a Firm That Appears to Have

question 79

Essay

You are the founder of a firm that appears to have significant long-term growth potential. Right now you and your family own 100% of the firm's shares and you are trying to figure out whether to keep things that way. How might you do that? Should you do that?

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Leisure Time

Time available for ease and relaxation, where no work-related duties are expected, allowing for personal preferences in activities.

Marginal Productivity

The additional output resulting from the use of one more unit of a factor of production, holding other factors constant.

Labor-saving

Technologies or methods that decrease the amount of work required to produce goods or services, often leading to increased efficiency.