Funding a Business Venture

In: Business and Management

Submitted By SCummings
Words 884
Pages 4
FUNDING A BUSINESS VENTURE
BUSN105-279
AIU Online

Abstract
Mrs. Bourne informs her readers of her viewpoint on investment bankers, the stock market, financial management, and risk financing. She then informs the audience of her and her business partner’s financial choice for starting their small business. The author wants the readers to understand why she and her partner made the choice that they made and what their second financial option would be if needed. She will describe the positives and negatives of each of their choices.

Funding a Business Venture
Investment banking is strictly buying and selling businesses for a profit. Investment bankers come up with a company’s value and buy the company from the owner, only to turn around and sell it piece by piece to the public. By selling the company in shares the investment banker makes a profit. Investment bankers are important because they assist in the introduction of initial public offerings. The stock market is what we call the registry of stocks and bonds that have been bought and sold. The function of the stock market is to keep a society informed about economic transactions and the value of certain stocks and bonds. The stock market is important because it keeps Americans knowledgeable about the rises and falls of the world that we live in. It is very important in keeping businesses running smoothly financially. Financial management is simply managing a business’s finances. Someone who is in the financial management field would be responsible for planning, organizing, monitoring, and controlling a business’s financial resources. Financial management is a very important necessity in business because if the funds are not monitored, a business may go bankrupt very quickly. Risk financing is providing funds and a plan to insure that finances are available in the case that an unpredicted loss…...

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