Why This is an Attractive Project The Arundel Partners' believe that they can make money on this project as it allows them to capitalize on the idiosyncratic risk of the motion picture business. Producing and distributing motion picture films is a risky business due to the uncertainty of moviegoers' tastes and a studio never knows if they have a blockbuster on their hands until after the movie has started production or even later after it …
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showed last 75 words of 1548 total
…most attractive point in which funds are distributed to the studio. Along these same lines, for productions that are scrapped prior to completion, the funds should revert back to Arundel along with a "cancellation" fee due to indecisiveness. Lastly, Arundel should ensure that it has the option to bid out the production of sequels to other studios--this will insure competitive pricing through a bidding process and will not tie its hands to any individual studio.