Hello, I wonder was there a minor error in Chapter 2 Section 7.1 labelling consequences of subscription system, but it's meant to be annual venture? I just cannot associate how this heading relate under the section. Thanks,
Think of the 'subscription system' as co-insurance, it's a system whereby more than one syndicate takes a share of the same risk. This is exactly what Section 7.1 describes. Think of the annual venture as the mechanism that allows members to provide capital for one year at time. Of course, any discussion of one inevitably leads into a discussion of the other. After all, the subscription system makes it very hard to keep track of which profit belongs to which member. That is why the the annual venture is necessary, otherwise it would become hopelessly complicated to disentangle the accounts of each individual member.
