Question

In: Finance

please explain this abstract thinking for me in relation to finance or financial management... '' lending...

please explain this abstract thinking for me in relation to finance or financial management...

'' lending hunting instrument to fellow clansman for period of time with understanding of being returned later with part of the kill

Solutions

Expert Solution

Let us first understand what this phrase means in a basic sense:  

A resource is being made available to someone who needs it ( here the hunting instrument is being made available to the clansman). The returns expected by the lender is to receive a part of the kill, that is, a part of the revenue generated or the sale proceeds as the case may be. The lender however bears no responsibility in case the borrower has not been able to make use of the hunting instrument.

In financial terms, the lender could be a creditor for whom the return of the capital invested should be accompanied by a fixed interest payable that is decided in advance to lending. Or it could also be an investor in the company who does not take part in the day-to-day management of the company but takes a share of the profits earned by the company. These type of investors are generally called angel investors in financial jargon.


Related Solutions

please explain this abstract thinking for me in relation to finance or financial management... and the...
please explain this abstract thinking for me in relation to finance or financial management... and the topic it relate to. '' BORROWING SEED FROM NEIGHBOR WITH UNDERSTANDING THAT THE AMOUNT OF SEED PLUS LITTLE EXTRA TO BE RETURNED AT END OF THE GROWING SEASOn
Please explain all the financial statements in financial management. Please explain them in detail and explain...
Please explain all the financial statements in financial management. Please explain them in detail and explain their importance.
Accounting and Finance: Explain why Working Capital Management is an integral part in financial management of...
Accounting and Finance: Explain why Working Capital Management is an integral part in financial management of a company especially in today’s circumstances with example.
a)         Explain the following in relation to financial management principles and practices in JKUAT university Kitale...
a)         Explain the following in relation to financial management principles and practices in JKUAT university Kitale CBD campus. Profitability index                   [3 marks] Payback period                       [3 marks] Internal rate of return              [3 marks] Accounting rate of return       [3 marks] Net present value                    [3 marks]
Explain the intent of the Truth in Lending Act. What is the difference between the finance...
Explain the intent of the Truth in Lending Act. What is the difference between the finance charge and the APR? please help! thank you
Explain the intent of the Truth in Lending Act. What is the difference between the finance...
Explain the intent of the Truth in Lending Act. What is the difference between the finance charge and the APR?  
Please describe and explain the importance of risk management and finance and give examples
Please describe and explain the importance of risk management and finance and give examples
1) What is finance? Define business finance. 2) Explain the types of finance. 3) Discuss the objectives of financial management
1) What is finance? Define business finance. 2) Explain the types of finance. 3) Discuss the objectives of financial management 4) Critically evaluate various approaches to the financial management. 
Corporate Financial Management: 7. In corporate finance, explain what is meant by the agency relationship. Discuss...
Corporate Financial Management: 7. In corporate finance, explain what is meant by the agency relationship. Discuss how agency costs come about and at least three ways in which these costs can be reduced. (50 %) Explain what is meant by corporate governance. Why is corporate governance important to the shareholders of a firm? Critically assess the following statement: “the same corporate governance rules should be applied to all companies”. (50 %)
Please explain the financial system and management of foreign exchange in the United States. (Please do...
Please explain the financial system and management of foreign exchange in the United States. (Please do not just copy and paste an answer from the internet, as I can easily do that myself. Looking more for a to-the-point easy to understand overall explanation)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT