Explain how contingency contract

Assignment Help Business Management
Reference no: EM133391258

Question

Imagine you are the head of a large hedge fund, Narcissus Capital LLC, and you are thinking of investing $10 million for a 20% share in a tech startup that promises to revolutionize the biotech industry by creating a method for running blood tests from a single drop of blood. You became even more excited today when the CEO ran a test of the technology right in front of you using a single drop of your blood in under an hour! The CEO, who is very charismatic and confident, claims that the technology will be ready to roll out to Walmart Clinics next spring, leading to at least $2 billion in gross revenue. However, you know all CEO's in "The Valley" tend to overstate their claims, so you want to figure out if this is a bluff, an exaggerated claim used to deceptively get your investment.

Explain how a contingency contract could be a tool you could use to detect whether the CEO is engaging in deception. In addition to this explanation, invent and describe a specific contingency contract you could use for this purpose.

Reference no: EM133391258

Questions Cloud

Global brand awareness : Levi's is currently considered a financial success with global brand awareness but this was not always the case.
Elevator pitch about arcade bar : Do you have a uniquely-effective solution to a specific opportunity? What is your differentiator?
Explain how they contribute to good governance : Briefly describe the component parts of the 5P framework posited by Zinkin and explain how they contribute to good governance.
How information technology affects business performance : Analyze how information technology affects business performance. Assess the implications and economic impact to the company due to frequent system outages.
Explain how contingency contract : Explain how a contingency contract could be a tool you could use to detect whether the CEO is engaging in deception.
Developing and implementing ethical policies and practices : Use the Internet to identify a Web site or article that discusses a framework for developing and implementing ethical policies and practices.
What market research material and social media techniques : What market research material and social media techniques would be required to help the decision making with respect to 'sweating the assets'?
Produce abroad and are re-shoring production : In recent years many businesses that off-shored manufacturing have reviewed their decision to produce abroad and are re-shoring production.
Started new business : Priya just started a business and is not sure how many units she needs to sell to earn a 30% profit margin.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd