Streetwatch
24 Pages Posted: 14 May 2003
Date Written: May 12, 2003
Abstract
This case study, intended as a teaching exercise, highlights the problems of contracting in a world of great uncertainty. Streetwatch is a startup company seeking financing, and the CEO has received two offers for investment, each with its own advantages and disadvantages. The case highlights the problem of asymmetric information as well as some possible responses, including monitoring, the structure of executive compensation, and staged financing and the "option to abandon."
The case also includes a negotiation and drafting "skills" exercise.
Suggested Citation: Suggested Citation
Fleischer, Victor, Streetwatch (May 12, 2003). Available at SSRN: https://ssrn.com/abstract=407140 or http://dx.doi.org/10.2139/ssrn.407140
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