Funding A Business
Running head: FUNDING A BUSINESS VENTURE
Funding a Business Venture
Jason L. Morales
American Intercontinental University
FUNDING A BUSINESS VENTURE
License a Technology
The preferred funding for my business would be to license a technology. It would still generate income because the company who licensed the product has to give the licensor a percentage of the licensed product. The bad thing about licensing a product is that the licensee can become the competitor of the licensor. This means, less royalties for the licensor. A way to prevent this issue is to make contractual provisions for minimum royalties.
When a corporation sells new securities to raise funds, the offering is called a primary issue. The person responsible for this is called an Investment Banker. The investment banker purchases the issue from the corporation arranges to resell the issues to investors.
An investment banker has 3 main functions which are, investigation, analysis and research and distribution and underwriting. Some investment bankers can perform all function but others specialize in only one or two. A corporation hires an investment banker to assist them in acting as the buyer or seller to negotiate the transaction. He is the bridge to secure the investment.
The investment banker has an important role in the economy and government. Investment bankers give advice to the corporation and.