A Venture Is Expected to Have an Exit Value of $10,000,000

question 24

Multiple Choice

A venture is expected to have an exit value of $10,000,000 two years from now. If venture investors invest $2,000,000 now, and expect a 20% compounded rate of return on their investment, what portion of the exit value would they need?

• A) 10%
• B) 20.2%
• C) 25%
• D) 28.8%
• E) 32%

Understand the dynamics and impacts of leader-member exchange (LMX) relationships on organizational behavior.

Differentiate between emotions and moods in the context of organizational behavior.

Comprehend how favorable exchange relationships with colleagues or bosses can influence a manager's relationship with subordinates.

Recognize the characteristics and behaviors associated with managers who have favorable upward relationships.

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if the other players keep theirs unchanged.

Simultaneous Pricing Game

A strategic interaction in economics where multiple firms set their prices at the same time, taking into consideration the potential reactions of competitors.

Trigger Strategy

A long-term tactic in game theory where a player's future actions are conditional on other players' actions, commonly used to enforce cooperation or punish non-cooperation.

Equilibrium Efficiency

The optimal allocation of resources in a market where supply and demand are balanced, leading to the best possible outcome for both producers and consumers.