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For value creation, you need both workers and capital (provided by founders and investors). The value is created by both together, not each independently. The c

For value creation, you need both workers and capital (provided by founders and investors). The value is created by both together, not each independently. The compensation for created value is based on market rate for both work and capital.

yamtaddle 4y ago
> The compensation for created value is based on market rate for both work and capital. This equivalence doesn't make much sense unless there's a widespread phenomenon of businesses "firing" owners in favor of other capital-providers who will accept lower returns.
- overrun11 4y ago
  Isn't this basically what a recapitalization is?
  - necovek 4y ago
    Usually driven by existing majority owners, with the goal still being to increase their own absolute wealth even if their relative ownership decreases.