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nydus/The Theory of Business EnterprisePublic

Thorstein Veblen examines the modern industrial system as a structure defined by the machine process and investment for profit. He analyzes how business enterprise and the pursuit of financial gain serve as the primary forces directing contemporary economic organization.

Page 126 of 422
Table of Contents

The Use Of Loan Credit

credit transactions current in the usage of the

business community for the purpose of investment :

. the old-fashioned loan, the usage of which has

101'^ come down from an earlier day ; and the stock

ii (J J share, whereby funds are invested in a joint stock

JtP I company or corporation. The latter is a credit

(H instrument, so far as touches the management of

the property represented, in that {in earlier usage

at least) it effects a transfer of a given body of

property from the hands of an owner who resigns

discretion in its control to a board of directors who

assume the management of it. In addition to

these two methods of credit relation there haa,

during the late-modem industrial period, come

into extensive use a third class of expedients, viz.

debentures of one form and another — bonds of

various tenor, preferred stock, preference shares,

ete., ranging, in point of technical character and

degree of liability, from something approaching the

nature of a bill of sale to something not readily

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