Interested to Buy Any Domain ? << Click Here >> for more details...
the differences between share capital and loan capital.
And the similarities.
- 2 Answers
- 40907 Views
- I also Faced
- E-Mail Answers
Answer Posted / ameet narayankhedkar
Share Capital:
it can be composed of both common/ordinary and preferred
shares, funds are raised by issuing these shares in return
for cash or other assets. it is equity financing, the
company pays dividends to share holders at certain
percentage if she is able to pay due to good financial
position. here share holders are one of the owners of the
company.
Loan Capital:
it is short term or long term liabilities, which has end
date and annul interest payments funds are raised by issuing
for example debentures against these funds company has to
pay the amount of the interest annually to debenture holders
and principle amount at maturity date.
Here they are not the owner of the company but the
creditors.
Conclusion funds raised through share capital is the equity
finance it is the owner ship share of share holders in the
company and dividend is paid.
Funds raised thru loan capital creates liabilities to
company and annul interest is paid to its creditors
| Is This Answer Correct ? | 10 Yes | 9 No |
Post New Answer View All Answers
What is an NPA?
What is 'Fixed' APR and 'Variable' APR?
Where do you see the Euro in 2018?
How often do you use social networking sites?
What is NSDL?
What is composite cost of capital?
How many number of SBI branches are there in West Bengal ?
what is group in Tally ERP 9?
What is the minimum and the maximum period for the fix deposit?
What are the assets have stopped giving income to a bank.
journal entry for vendor and depreciation
Throw some light on Aam Admi Party?
What were the issues which were demonstrated in the G - 8 summits recently and are drawing huge attention?
What do you understand by mobile banking?
What percentage of FDI is allowed in Retail, aviation and broadcasting?
