Common Stock- shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company. Dividend- a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves). Equity- the value of the shares issued by a company.
In such a case, the firm approaches the major shareholder to acquire its shares often at a significant premium above market price (Peyer & Vermaelen, 2005). This type of transaction is called “greenmail”. Second, a major shareholder might want to sell a large number of a firm’s shares, however the market for the firm’s shares is insufficiently liquid. If the market is illiquid, selling such a large portion of a firm’s shares might induce a substantial impact on the share price. To avoid such a disruptive impact the shareholder might approach the firm and negotiate the repurchase of shares via a private transaction.
When capital markets are enables to offer funds, increase the risk of competitive entrants. The industry will becomes a magnet to new if a firm have a very high profit. Unless got way we can solve this problem if not the competition and competitor will increase. Firms in an industry try to keep the new entrants low by barriers to entry, first is economies of scale. An economy of scale is when an industry is characterized by large economies of scale for new firms to enter and participate, if they are willing to accept a cost disadvantage.
Also, it was generally recognized that entrepreneurs serve as agents of change; provide creative, innovative ideas for business enterprises; and help business grow and become profitable (Kuratko & Hodgetts, 2007) to regain a competitive lead in the world economy (Baumol et al, 2007). However, many small business support programs may not be supportive of entrepreneurship per se (Schramm, 2004). In the European
Even the international companies bring considerable economy growth to developing countries such as technology transfer and job opportunity. Nevertheless, the multinational corporations also bring problems to developing country like harm human right. However, it is believed that multinational companies bring advantages morn than disadvantages. The developing country should increase the economy in the short term because competed economy can enhance competitive strength in the world and ameliorate the life of developing country people such as using additional finance develops capital
It is recorded under shareholders' equity on the balance sheet”. Berkshire can use the retained earnings to finance in their new hospital and testing clinic. 3. Venture Capital Definition of venture capital is Money provided by investors to startup firms or increase the portfolio of business with high growth potential and this would give high rates of return. These investments are high-risk investments.
Entrepreneurial education is considered central to the economic development of nations (Kabongo & Okpara, 2010). Entrepreneurship education has to increase entrepreneurial self-efficacy, self-employment, and risk-taking attitude of the entrepreneur (Cheng & Chan, 2009). Entrepreneurship education creates enormous business opportunities and trains people with innovative enterprise skills to grasp the opportunities for starting new entrepreneurial activities (Cheng & Chan, 2009). Entrepreneurship education is one way of addressing poverty reduction, as there is strong empirical evidence suggesting that economic growth over time is necessary for poverty reduction. Entrepreneurship boosts economic growth, enhances educational attainment and increases the rate of economic growth (Mitra & Abubakar, 2011).
With the increasing number of NGOs, the competition for funds and grants are rising as well. It can be traced back to the tendency of behaving like for-profit organizations. If the non-profit organizations’ aim is to be self-sufficient, they should get in the market by taking risks and implementing strategies which is blended with NGO’s mission and vision. Moreover, creativity is an essential factor which can change the mindset of the people who will pay for the product or service. It is crucial to understand that the new sources of revenue may alienate the organization from its main objectives.
Higher education may not be fruitful all the way without inducing R&D environment. The importance of R&D is understood as also endorsed by endogenous economic growth theory and knowledge based economy phenomenon. The contribution of R&D in economic growth of a country is manifested mainly by developed countries while developing countries are trying hard to groom in innovative products and services through investment in R&D for sustainable economic growth. R&D, innovation and knowledge workers are elementary indicators for the economic growth by becoming knowledge based economy (Raspe & Van Oort,