Views: 0 Author: Site Editor Publish Time: 2021-10-26 Origin: Site
Everyone is an investment operator
In order to allow everyone who is willing to come to do business to participate in the business, the maritime country dominated by Venice first launched a new type of financing system-limited joint venture company. This type of financing can solve the financing of fundraisers to build new ships, lease state-owned ships, and purchase commodities.
It is divided into two financing methods according to different contracts:
The first is that investors contribute two-thirds of the capital, the operators contribute one-third of the capital, and the profits are halved.
The second is that investors make all capital contributions, and operators only use human resources to make capital contributions, and the profits are distributed at a ratio of 3:1.
The value of a limited joint venture company lies in:
For business operators, they can start a business without capital, or they can reach a joint relationship with multiple investors in one journey.
For investors, their cooperation with different operators not only diversified risks, but also opened up diversified operations. Imagine that the same wood, loaded on different routes, can be exchanged for spices from Alexandria, or silk fabrics can be obtained from Syria. What investors have to do is to provide funds and resell goods.
This fine diversified investment method gives those who cannot engage in overseas trade for various reasons have investment opportunities. Venice’s financing method allows ordinary people to have the opportunity to participate in trade. In this context, even if the amount that everyone can pay is not much, it is still a large sum in total. The limited joint venture company has made great contributions to promoting the economic development of Venice.
Comparing the Arab and Jewish commercial financing systems during the same period, the latter’s financing based on blood ties differs from Venice’s financing ideas by more than an order of magnitude.
