Funding A Business Venture Essay

886 words - 4 pages

Investment bankers are individuals who are responsible for underwriting securities of a company. I have discovered that investment bankers manage the issuance of bonds and counsel their clients on high level issues of financial organization. They also propose and complete strategies for acquiring and merging with other companies, and manage selling a company’s stock. In my opinion, this profession is very important in that, generally speaking, investment bankers are crucial figures in shaping American and world economies, along with the success of your personal business.
The stock market, also known as equity market, is a public unit for the trading of securities of companies among other companies and individuals. The shares are listed on a stock exchange, as well as the shares privately traded. The stock market is one of the most important sources for firms to raise capital by allowing companies to be traded publicly or raise additional funds for development by selling shares in the public market.
Financial management is, simply declared, the way one budgets their money and/or finances. One who manages the finances of a company makes estimations on capital requirement, decides on capital structure, finds sources of funding, etc. It is very important to have a trust-worthy financial manager, as they are responsible for the funds and success of the business.
Risk financing attempts to alleviate the bearing of loss costs by structuring the availability of funds to pay claims and aid in the company’s recovery. Risk financing pools help structure financial arrangements to ensure stable flow of funding into the pool, that are sufficient to cover the unpredictable damage that occur due to losses. In the case of any type of loss in a company, risk financing is definitely important to enable the company to sustain financial stability as it moves forward from the loss.
Though there are numerous distinctive ways to finance the start-up of a business, I individually feel that licensing the technology is the best choice for the particular scenario in this assignment. Licensing the technology has many pros and cons, as does any business decision that could possibly be made.
Licensing technology, in my personal belief, is the most sensible way to begin a business in the assigned scenario. The utmost benefit of licensing a product is that there is little to no cost, as the company providing the license will pay for practically everything implicated - including patenting, packaging, design, sales, production, etc. Another pro to licensing technology is that royalty has the possibility of continuing on for years, with most companies paying a portion of the expected royalty in advance to the business owner. The...

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