Why Is the "Management Team and Company Structure" Section of the Business

question 59

Essay

Why is the "management team and company structure" section of the business plan often given disproportionate weight among investors?

---

Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the shareholder's equity remains the same.

Stock Price

The cost of purchasing a share of a company in the stock market; it fluctuates based on supply and demand.

Dividend Income

Earnings distributed to shareholders, usually derived from the company's profits, for holding the company's stock.