What is a zero debt company?
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Answer / h.r. sreepada bhagi
A Zero debt company is one which has not borrowed any money
from banks, financial institutions or others for long or
medium term requirements or for working capital. Since
there's no debt, the company will have no commitment for
repayment or servicing of interest.
In the present world, Zero Debt Company is a rare scenario.
Zero Debt. concept is not related to Sundry Debtors or
receivables in a company.
| Is This Answer Correct ? | 11 Yes | 0 No |
Answer / amr soliman
A company which have no dept on their financial statements
Means it did not borrow for making investments, just depend on self finance
So, it don't have to pay interest for that dept, and this is an advantage when interest rate rises.
Iam totally agree with answer 1
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / arun
Which company not pay any amount on account of interests
Is called zero debt company
| Is This Answer Correct ? | 0 Yes | 1 No |
the terms are used interchangeably, unfortunatley. some
people refer to total liabilties as total debt. many
investors refer to debt as only interest bearing debt.
there's no clear answer, but the warren buffet thing, i
think he's talking about zero interest bearing debt, b/c
yes, of course those companies have other liabilities.
| Is This Answer Correct ? | 2 Yes | 4 No |
Answer / syed iliyas
The company whihc has no debtors(no credit sales only cash
sale) is called zero debt company
| Is This Answer Correct ? | 5 Yes | 11 No |
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