BU387 Lecture Notes - Lecture 1: Angel Investor, Adverse Selection, Moral Hazard
Document Summary
Accounting has two broad classifications: financial, managerial. Accounting focuses on the cash flows from various decision makers: obtaining capital ie. financing (debt, equity, deploying capital ie. assets, people, etc, operations. For public venture capitals, from r&d to operating history, the company will have to rely on the tsx venture exchange. Two types of information asymmetry problems: adverse selection, knowing that there is an information asymmetry, capital markets may attract wrong kinds of companies, moral hazard, knowing that there is an information asymmetry, individuals may act in.
