BU111 Lecture 9: BU111 - Lecture 9 - Midterm Review
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Bu111 - lecture 9 - economic factors (continued) Explain how the elements that make the entrepreneurial process successful are similar to/related to the diamond-e. (3 marks) The roles of the 4 pillars for business financing. Pillars 1 and 2 (banks and alternate banks) - used to deposit money in hopes of getting interest in return. Provide funds and increase money supply in the economy. Most businesses that will be involved in activities with the first two pillars are small businesses. Pillar 3 (specialized lending/saving intermediaries) - venture capitalist, mutual funds, life insurance. Big organizations that make big investments even bigger. These businesses make money by making big investments in other organizations. Company takes funds you pay and invests them, in hopes that the number of claims that are made will be smaller. Pillar 4 (investment dealer) - when you decide to go public, do an ipo, make corporate bonds.
