ECON 2720 Lecture Notes - Lecture 11: Independent Business, Dutch East India Trading, Black Death
28 Feb 2017
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Clear line of structures of business organization. Virtual monopoly over supplying english wool to europe. Set up permanent offices in many cities unlike other business people that would go to a fair and then go back home. Knew in advance that they had to change the arrangement. E. g. a partner would want to take more shares. Terminate old company and create a new agreement that gave that partner a greater share in the company. Write up a new partnership agreement before the old one was terminated. Works if you have smaller number of partners. Would have to draft up a new agreement every time there was a change with one of the partners. That"s what the problem with partnerships is. Puruzzi were able to transfer vatican funds from. England to rome without any silver or gold. Other traders needed to ship money all over europe. Merchant banker: acting as a banking agent for businesses.
