what is the generic difference between debt and equity?
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Answer / deba
Equity is owners fund where as debt is outsiders
funds.interest gives for debt where as dividend paid for
equity.debt has less risk where as equity has high risk.
| Is This Answer Correct ? | 14 Yes | 2 No |
Answer / r sumitra
debt is the borrowed capital
equity owned capital
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / suman
the above answer is partially correct.
there it was written that equity is less risky than debt,
the correct answer is---- equity is more risky than debt
| Is This Answer Correct ? | 11 Yes | 7 No |
Answer / pawan
Debt is the source of fund supplied by external financiers
for a contracted return and period.
Equity is the residual ownership on the returns of a firm
after satisfying all the liabilities.
The pecking order of debt is higher than equity, the risk of
equity is higher than debt
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / himanshu jain
debt and equity is both are major part of company for
raising a money from other sources and debt is very cheaper
source of a company and equity is less risky rather than
debt
debt is much risky rather than equity that means higher
risk higher profit less risk a less profit
| Is This Answer Correct ? | 14 Yes | 12 No |
Answer / layana
Equity
more risk, more return,shareholders will get
dividend,shareholders are considered as the owners of the
company
Debt
less risk, low return, debt holders will get interest,
they are considered as the creditors of the company
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / vvivek22
Why does a Company require Funds?
Ofcourse, To expand.
How does it raise Funds?
Though Debt (Bank Loan) or Equity (entering in to capital
market).
Periodic monthly payment has to be made for Debt whereas
equity has no obligation, but you are giving up a portion
of your business.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / p.mitra
Debt is the lenders capital i.e company borrows the amount
where as Equity is the owners capital i.e investor becomes the
partner of the company.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / deepak
Euity is wealth of organisation whereas debts is loan for an organisation.Debts always creats expenses for an organisation but eqity not
| Is This Answer Correct ? | 0 Yes | 0 No |
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