Why Is It not a Good Idea to Tell Investors

question 23

Essay

Why is it not a good idea to tell investors in your business plan that your exit strategy is simply "to take the business public"?

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Definitions:

Producing Bagels

The process of making bagels, often involving mixing, shaping, boiling, and baking dough in a manner specific to this type of bread.

Marginal Cost

The additional economic burden from creating one more unit of a product or service.

Average Total Cost

The cost per unit produced, calculated by dividing the overall production expenses by the total units produced.

Fixed Costs

Fixed Costs are expenses that do not vary with changes in production level or sales volume, such as rent, salaries, and equipment leases.