To Obtain the Percent Ownership to Be Sold in Order

question 36

Multiple Choice

To obtain the percent ownership to be sold in order to expect to provide the venture investor's target return, one must consider the:

• A) cash investment today and the cash return at exit multiplied by the venture investor's target return, then divide today's cash investment by the venture's NPV
• B) cash investment today and the cash return at exit discounted by the venture investor's target return, then divide today's cash investment by the venture's NPV
• C) cash investment today and the cash return at exit discounted by the venture investor's target return, then multiply today's cash investment by the venture's NPV

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Definitions:

Productivity Losses

The decline in the effectiveness or efficiency of a workforce, often leading to a decrease in output, revenue, or service quality.

Potential Outsourcing

The possibility of transferring certain job functions or services to external providers to increase efficiency or reduce costs.

HR Departments

Organizational units responsible for managing workforce-related issues such as recruitment, training, benefits, and compliance with labor laws.

Market Niches

Specialized segments of the market catered to by businesses providing unique or narrowly focused products or services.