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Illustrate your understanding of a co-operative relationship between an entrepreneur and an investor. - Leaving Cert Business - Question 9 - 2019
Question 9
Illustrate your understanding of a co-operative relationship between an entrepreneur and an investor.
Worked Solution & Example Answer:Illustrate your understanding of a co-operative relationship between an entrepreneur and an investor. - Leaving Cert Business - Question 9 - 2019
Step 1
Understanding the Co-operative Relationship
Answer
A co-operative relationship between an entrepreneur and an investor is one where both parties work together to achieve shared objectives. This relationship is often characterized by mutual trust and open communication.
The entrepreneur has the vision and the business acumen to develop a product or service, whereas the investor provides the capital necessary to bring that idea to fruition. Together, they form a partnership aimed at success, recognizing that both their interests are aligned.
Step 2
Common Goals
Answer
In this cooperative setup, the primary goal is to successfully develop a product or service and achieve a profitable return on investment. Both parties benefit: the entrepreneur can focus on innovation and market growth while the investor gains financial returns, thus making it a win-win situation.
Step 3
Role of the Investor
Answer
The investor plays a crucial role by providing the necessary funding which allows the entrepreneur to test ideas, conduct market research, and eventually develop a new product or service. This financial support not only enables the project to commence but is also pivotal for scaling operations.
Step 4