A ‘transaction’ is an act of debt between parties. The seller owes goods to the buyer (performance debt), and the buyer owes money to the seller (monetary debt). A transaction is considered complete when the debt is settled and the promise to owe each other is called a ‘contract.’ Thus, a good trader or businessman excels at making and repaying debts. When it comes to debt, the type of debt matters. Anyone who misjudges this should not engage in business. - Joseph’s “just my thoughts”
Receiving an investment signifies that you are receiving a prepayment for future costs and expenses. To generate revenue, you must cover these costs upfront. If you lack the funds necessary to manage current expenses while aiming to raise revenue, you might need to borrow money or attract investments. However, as a recipient of these funds, you cannot use them freely; this money does not belong to you. Legally, your options for utilizing this money are limited: you can either receive it as a salary from your expense account, as a dividend from profits after deductions as a shareholder, or pursue official management incentives. This underscores that the invested funds are not your own. When funds are invested, it implies that profits will be derived from someone else’s money, which you will share with the investor. Although investment alleviates the immediate pressure of expenses, it simultaneously heightens your obligation to generate profits promptly. Being fully funded does not equat...