:: Home Page            
 Advertise your Business Here     
Browse  |   Placement Papers  |   Company  |   Code Snippets  |   Certifications  |   Visa Questions
Post Question  |   Post Answer  |   My Panel  |   Search  |   Articles  |   Topics  |   ERRORS new
   Refer this Site  Refer This Site to Your Friends  Site Map  Bookmark this Site  Set it as your HomePage  Contact Us     Login  |  Sign Up                      
Categories >> Business Management >> Finance


 Business Administration interview questions  Business Administration Interview Questions (413)
 Marketing Sales interview questions  Marketing Sales Interview Questions (878)
 Finance interview questions  Finance Interview Questions (1046)
 Human Resources interview questions  Human Resources Interview Questions (699)
 Personnel Management interview questions  Personnel Management Interview Questions (11)
 Hotel Management interview questions  Hotel Management Interview Questions (18)
 Industrial Management interview questions  Industrial Management Interview Questions (58)
 Infrastructure Management interview questions  Infrastructure Management Interview Questions (12)
 IT Management interview questions  IT Management Interview Questions (87)
 Non Technical interview questions  Non Technical Interview Questions (68)
 Business Management AllOther interview questions  Business Management AllOther Interview Questions (364)
the differences between share capital and loan capital.
And the similarities.
 Question Submitted By :: Finance
I also faced this Question!!     Answer Posted By  
# 1
loan capital

Part of a firm's capital employed that is
(1) raised from bank or finance company as long-term loans &
from debt-equity investors in the form of debentures or
preferred stock
(2) it earns a fixed rate of interest instead of dividends, and
(3) must be repaid within a specified period, irrespective
of the firm's financial position.

Also called borrowed capital.

Share Capital

Part of a firm's capital employed that is
1)raised by issuing shares in return for cash or other
2)It earns dividends
3)It needs to be repaid only at the time of company's
4)Share capital can be composed of both common and preferred

Also known as "equity financing".
Is This Answer Correct ?    10 Yes 2 No
# 2
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
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
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 ?    1 Yes 3 No
Ameet Narayankhedkar

Other Finance Interview Questions
  Question Asked @ Answers
difference between Funds Flow and Cash Flow statements? EDS 17
repo rate   8
defferd revenue exp Capital-IQ 1
hai viewers! i am deepa,pursuing my MBA finance. I want to become a portfolio manager. what is the way in which i can achieve my dreams.My college is not so highfi,so big companies dont come to recruit us in such high positions.but i want to be there.How do i?can u plz suggest. Kotak 3
what are collateral securities? TATA 9
reasons for doing mba Idbi-Bank 11
Why REPO rate is being hiked to control Inflation ? GMR 4
what is financial management?   6
ON BSE,some shares are listed as EQ and some as BE,wat does it mean? Capital-IQ 3
what is finance? Thomson 14
I have taken an Education Loan of Rs.4.00 lacs from a Nationalised Bank for Higher of my son during last year, Now I again want an Education Loan for my daughter for Rs.3.00 lacs from the same Bank. Now Bank is asking for additional security By way of guarantee or mortgage of House.Please tell me whether it is necessary to give guarantee or collateral security for taking Education loan for my second child?   4
For more Finance Interview Questions Click Here 

Copyright Policy  |  Terms of Service  |  Articles  |  Site Map  |  RSS Site Map  |  Contact Us
Copyright 2013  All Rights Reserved.   ::