Suppose that the owner of Risk Adventure, Bob Ituary is sufficiently wealthy to finance the 750,000 from his personal funds, will he do so? If he invests these funds, does he then follow the advice of the junior manager? If instead of using his own funds, Bob asks a friend for funds necessary to cover the liquidity needs in exchange for an equity stake of α%, what strategy does Bob end up following and why?

Answer rating: 100% (QA)

To determine whether Bob Ituary will finance the 750000 from his personal funds we need to consider ... View the full answer