Posted By: MbaNotesWorld
November 15, 2010
- An investor is a person who gives the finance (capital) required for a business in exchange for a return
in that business. This is called equity finance.
- E.g. A common way of investing money is to buy shares. The investor becomes a shareholder and shares in its profits by receiving a dividend.
- The investor can lend money to the entrepreneur but his must be paid back. This is called debt equity.
- E.g. Bank of Ireland loaned Brody Sweeney £21,000 to open the first O’ Briens sandwich bar.
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