1. Expected Return– What you think that you will get back from an investment
  1. Ex Ante– Predictive; looking ahead; preventative measures that you put in the charter or it is found in the statute.
  1. Ex Post– Looking back; hindsight; solving problem after it has occurred usually through court proceedings.
  1. Human Capital– personal skills, abilities, time, and effort
  1. Money Capital– property that is valued in terms of money
  1. Team Specific Investment– property or services which have a higher value when used within a specified group of venturers
  1. Implicit Team– Venturers who operate separate businesses which engage in joint production by contract.  EX:  lead company and plastic company who depend on each other to make pencils.
  1. Opportunism– Exercise of self-interest for personal gain.  This is the selfish investment
  1. Discreet Contract – An AGREEMENT WHERE PARTIES SPECIFY ALL OBLIGATIONS AT THE OUTSET.  This is the way it is going to be…outcome determinative
  1. Relational Contract – An agreement where parties create a structure to resolve future issues.  It tells you the framework by which it will tell you the outcome.
  1. Risk Averse– Preferring safety; not taking any chances
  1. Risk Preferring– Unafraid of chances; gambling
  1. Risk Neutral– Unaffected by the element of chance or safety