Saturday, April 9, 2016

Week 13 Reading Reflection

1.) What I was surprised to see the most in this chapter was that there is a method of venture evaluation only for last resorts. I didn't expect there to be a specific method just for one sort of scenario.

2.) I had a hard time understanding the idea of dividend preference. In the book, I don't think they provided a good definition for it. Also it didn't have an idea of what a common and preferred stock was.

3.) One question I would ask the other is does he think that Facebook will still be profitably and have growth in the future? Does it seem more likely that it will fade away like things like Myspace or digg? Also, is there another website he believes is valued way more than its actually worth? Facebook was thought to be too highly valued, is something like twitch or another site similar?

4.) I don't believe emotional bias is a common issue, or at least one that is big enough to warrant its own section in the book. If an entrepreneur can keep a business running for a while, they have an understanding of how their business fairs with their competitors. The only time this could really apply is if your company is as huge as Facebook. I don't think a small business could have this issue.

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