Monday, 8 October 2012

Private Equity - VI

As one of the instruments of the most unstable item of GDP; increasing efficiency of it contributes to economy in various ways:

1) competition increases
2) allocation of resources is efficient
3) abundant factor of production brings better division of labor bestly seen between startups and VCs
4) NPVs are maximized
5) innovation is encouraged
6) investment is relatively stabilized