Let's say that you have decided to make a financial investment in a small company.
You give "X" amount of money with the understanding that the company will: Pay its rent, utilities, vendors, salaries etc. Anything that is left over would be considered profit and would go toward repaying the investment followed by earnings.
A basic agreement, nothing complicated.
With every financial investment there will be risk. There is no definite time lime for investment money to be repaid or for profits to occur, if there are profits at all.
So one day you decide that you are tired of waiting for the business to start making money.
What do you do?
A) Realize that it was a risk to invest and since you have not actually lost any of your investment yet, you wait it out.
B) Decide that you will give up your investment money and dissolve the agreement.
C) Call the company and tell them you want all of your money back. They should stop paying rent, utilities, vendors and salaries until that point. Getting their money back is more important that anything else.
3 comments:
I think "Option A" is the only decent answer here, but reality dictates that the answer more often than not will end up being "Option C." Such is the sad state of the world we live in.
It sounds like we've invested in the same small company. I'm taking option A ... I'm waiting it out.
uhoh.
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