What is the difference between debt and equity?

Answers were Sorted based on User's Feedback



What is the difference between debt and equity?..

Answer / shruti

debt and equity bith are types of borrowings that companies
make from general public.
Debt holders are like money lenders, companies are obliged
to pay back the money to debt holders even if its making
loses. They are the first ones who are paid back money even
before equity holders.
Equity holders on the other hand are the owners of a
company. They dont just share profits but also loses that a
company make.

Is This Answer Correct ?    52 Yes 7 No

What is the difference between debt and equity?..

Answer / r.padmalakshmi,student

debt means an amount borrowed by the company and need to be
repaid. equity investments are brought in by the investors
who like to share the ownership.

Is This Answer Correct ?    43 Yes 8 No

What is the difference between debt and equity?..

Answer / manju

Debt is a loan borrowed by a company from financial
institutions like banks and money lenders , etc. They are
provided interest as the remuneration and they are the
creditors of the company.
Whereas equity is collected from general public or
institution through the issue of shares.They get
remuneration in the name of dividends. The holders of
shares are the owners of the company and they take part in
it's affairs.

Is This Answer Correct ?    30 Yes 3 No

What is the difference between debt and equity?..

Answer / sachin sharma

debt is the money which company has a obligation to pay in
any condition.they get predecided interest not profit
equity holder is the owner of company .

Is This Answer Correct ?    16 Yes 4 No

What is the difference between debt and equity?..

Answer / i k pavan

debt means the company must pay the intrest,and it is the
repayable ammount,when the company pay the dividend the
company first prefer to the debenture hoders.
but the equity ammount does not pay,the compny only pay the
dividends,butnot pay any intrest the dividend ammount is
mainl depending on profits of the company.

Is This Answer Correct ?    7 Yes 1 No

What is the difference between debt and equity?..

Answer / abhijeet

Debt means Borrowed Capital(debenture) from borrowers it may
be Financial Institutions, Banks, money lending companies etc.
Fixed amount of Interest is paid to its Debenture holders. &
this type of capital funding is cheaper than Equity
Equity is nothing but raising funds from general public they
have least priority and Dividend is required to be paid only
if there is profit remains for it.

Is This Answer Correct ?    7 Yes 1 No

What is the difference between debt and equity?..

Answer / sheetal kumar garg

debt means loans who provides by any financial institutions
and repaid by the people and on interest rate on fixed on
debt. but equity means cash market who invest in cash it is
highly risky.

Is This Answer Correct ?    7 Yes 1 No

What is the difference between debt and equity?..

Answer / damu1707

Debt means the amount borrowed by the company form outsiders like financial institutions, lending organisation and etc.

Equity means amount invested by it's share holders in business and it's proprietor. they can get the dividends out of profits earned by the company.

Is This Answer Correct ?    7 Yes 2 No

What is the difference between debt and equity?..

Answer / a.dhanabal

Debt Is Borrower From Banks& other Funding Agency.
But Equity Is Individual Contribution And Liable have the
company

Is This Answer Correct ?    6 Yes 3 No

What is the difference between debt and equity?..

Answer / purvi

debts are the loans having fixed return irrespective of
companys health whereas eqiuty returns depend on companys
health
debts are close ended and equity are open ended or both
debts are given first preference on repayment during
bankruptcy whereas equity are given second.

Is This Answer Correct ?    1 Yes 0 No

Post New Answer

More Banking Finance Interview Questions

what are all the things will consider while doing sensitivity analysis?

0 Answers   Eureka Forbes,


State some points of Union Budget 2017?

0 Answers   IBPS,


what is open intrest

6 Answers   ABN AMRO,


What should be done to improve the economic growth of the nation?

0 Answers   State Bank Of India SBI,


What is the difference between commercial and investment banking?

0 Answers  






Explain Market Monitoring?

0 Answers  


Tell about current five year plan and newly formed NITI Aayog?

0 Answers   IBPS,


What are mutual funds? Why are mutual funds better than stocks?

0 Answers   State Bank Of India SBI,


What do you know about CTS?

0 Answers   Nabard,


What is the Largest Private sector bank of India?

0 Answers  


HOW DO YOU DEFINE RESEARCH? AND EXPLAIN HOW RESEARCHH HELPS FOR BETTER DECISION MAKING IN A FMCG COMPANY.

0 Answers   Indiabulls,


What do you mean by crr & slr rate?

0 Answers  


Categories
  • Business Administration Interview Questions Business Administration (517)
  • Marketing Sales Interview Questions Marketing Sales (1279)
  • Banking Finance Interview Questions Banking Finance (3208)
  • Human Resources Interview Questions Human Resources (745)
  • Personnel Management Interview Questions Personnel Management (68)
  • Hotel Management Interview Questions Hotel Management (29)
  • Industrial Management Interview Questions Industrial Management (113)
  • Infrastructure Management Interview Questions Infrastructure Management (14)
  • IT Management Interview Questions IT Management (97)
  • Supply Chain Management Interview Questions Supply Chain Management (16)
  • Operations Management Interview Questions Operations Management (39)
  • Funding Interview Questions Funding (79)
  • Insurance Interview Questions Insurance (494)
  • Waste Management Interview Questions Waste Management (1)
  • Labor Management Interview Questions Labor Management (48)
  • Non Technical Interview Questions Non Technical (73)
  • Business Management AllOther Interview Questions Business Management AllOther (546)