Read the following passage carefully and answer these question. Certain words/phrase have been printed in bold to help you locate them while answering some of the question.Over the last three centuries, the world economy has evolved from a predominantly agriculture-based system to a digital economic

Read the following passage carefully and answer these question. Certain words/phrase have been printed in bold to help you locate them while answering some of the question.

Over the last three centuries, the world economy has evolved from a predominantly agriculture-based system to a digital economic system. The earlier economies were mainly agrarian. In this era, capital did play a role, as did technological innovations such as the plough, the steamboat or the train. But land and labour were more critical.

With the industrial revolution, the global economy was primarily driven by the ability to produce goods for the mass market. This led to the industrial economy where capital and labour were the most important drivers. In the service economy, the wealth created by services exceeded the wealth created through manufacturing. Here, the ability of the service provider to establish a sound business gave him access to additional capital. This evolved into a global economy where goods and services were traded across international borders, with little restriction. ln this period, capital started flowing across border on all large scale for the first time.

The last five years have seen the advent of the digital economy where technology is becoming the driving force. With information being the driver of value and wealth creation, information logy is becoming the key to success in a growing number of industries. In the digital economy, the power of innovation and ideas gained the upper hand over direct access to capital.

The Indian economy is in a unique in terms of its economic evaluation. While manufacturing and service industries in India cannot freely access capital, the new breed of IT:- based industries have access to venture capital and private equity. The country's potential in this emerging sector has opened the doors to capital inflows that are still not available to traditional industries.

There are two key trends which will boost the democratization of capital, either directly as funding sources or indirectly.

More effective capital market routes---especially for information - based and software companies.

This is already happening rapidly. A market that was supposed to be stagnating with no public offering from the manufacturing sector in the first quarter of the fiscal year may see as many see as many as 20-25 new software issues this year. Numerous internet and e-commerce companies are tapping funds through the capital market. For the financial intermediaries as well as for the investing public, dot com or 'info' initial offerings are fast becoming attractive to investment alternatives to traditional manufacturing or financial sector offers.

With more effective capital markets, for high potential IT stocks, 'critical mass', which in the industrial economy' was primary in ensuring a company's ability to raise capital, will cases to matter. This underlines the manner in which a burgeoning digital economy has led to a redeployment of capital from a concentrated segment to the smaller knowledge entrepreneur.

A greater number of venture capitalists actively seeking to fund budding knowledge entrepreneurs. Along with the rise in Net entrepreneurs one has seen the emergence of a new breed of venture capitalists who recognize the potential that resides in these ideas. The emergence and strengthening of the virtual economy necessitates sources of funds at the' ideation' stage where business plans may still be at the in fancy stage and potential not clearly identified.

This need is being fulfilled by the incubator funds or the angle investors who hand-hold internet startups and other info tech ventures till the stage at which they can attract bigger investors. Instead of looking at high risk but big ventures, this genre of venture capitalists are looking at investments in companies which have the potential of excellent valuations in the future on the strength of their ideas.

What impact an economy has been envisaged owing to rise in net enterprise ?
1). The venture capitalist have started financing the projects even at the planning stage.
2). The economic planning will known more be realistic now.
3). The funding of unplanned project has increased
4). virtual economy has necessitated the source of funds from abroad

---

Join Telegram Group

Answer This Question
Name:
Email:
Answer :
Sum of (1+1)
Submit:

Other Questions

1. Gandhiji will ...... in history as one of the greatest men. that ever lived.

2. (1).One of the most widely spread of bad habits. (P) whlch is now smoked or chewed by men (Q) And even by the chidren. (R) often by women. (S) is the use of tobacco. (6) almost all over the world.

3. Below a passage is given with five blanks labelled (A)-(E). Below the passage five options are given for each blank. Choose the word that fits the blank most appropriately in the context of the passage and mark the corresponding answer. The alleged delay in providing treatment to a man thrashe

4. Fill in the blanks with the word that makes a logical meaning in both the sentences. 1. His poetry is full of obscure literary __________.  2. He made an __________ to a secret plan in his speech.

5. Butt in

6. What is the active/passive of - The accountant took the money from the customer.

7. In the following sentence, a part of the sentence is underlined. Below are given alternatives to the underlined part, which may improve the sentence. Choose the correct alternative. In case no improvement is needed, choose the alternative that indicates 'No improvement.' Two other incidents with the same period have always unhitched to my memory.  A. surrounded to  B. deferred with  C. clung to 

8. A majority of Indians prefer to use internet for accessing banking and other financial services than shopping online, show a new survey. Almost 57% of Indians respondents using the internet prefer to bank online and use other financial services due to hassle-free access and time saving feature of o

9. What is the antonym or opposite of word detest

10. P : He was a funny looking man with a high, bald, done shaped head, a face very small in comparison and a long wavy beard. Q : He didn't work at his trade-a stonecutter, more than what was necessary to keep his wife and three boys alive. R : His unusual features were standing a joke among his friends. S : He was a poor man-an idler.