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Why is the issue of financial contracting important in venture capital or entrepreneurship financing?

Why do we care about this issue in the present context?

The articles in the Module cite the term 'Optimistic Entrepreneurs'. What is the context and why are these issues relevant here?

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Why is the issue of financial contracting important in venture capital or entrepreneurship financing?
The issue of financial contracting is important in venture capital or entrepreneurship financing because the design of the contract may actually prevent the use of the venture capitalists funds for less productive use. If the venture capitalist provides funds upfront to the entrepreneur there is possibility that the funds may be used for purposes that may not be productive or achieve the goals of the venture capitalist.
There are numerous clauses that are included in the financial contract to ensure that the funds are used for the purpose for which they were provided. Usually, the venture capitalist requires that a management position be given to him. This enables the ...

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Hospital/healthcare mergers

Hello BrainMass OTAs,

I need help with two questions strictly related to healthcare/hospital mergers.

1. Evaluate this assertion: since 1997 there has been a steady decline in hospital mergers. A major reason for this decline has been the lack of anticipated cost savings from the mergers.

2. Also, if a health care merger goes wrong what are the chances of a successful "demerger?"

BrainMass OTA, please provide you ideas in a concise less than 150 words per question. I need this to the point, succinct and brief because OTAs tend to confuse me with verbose, too in-depth analysis in which I can draw from for my own response. Please, use as much plain English as possible.

In your response I would like you to reference the attached chapter from McLean, Robert A. (2003). Financial Management in Health Care Organizations (2nd ed.). Albany, NY: Delmar Publishers.

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