Answer / m.s.s.v.sri kumar

There are broadly two resources for capital. 1) Internal
resources 2) External resources.
Plugging back of profits will comes under Internal resources.
External sources can be classified in to Own capital and
debt capital. The combination of debt and own capital is
called capital structure.
Issue of shares will fall under own capital
Issue of debentures, Company deposits will fall under debt
capital.

Answer / mahesh jinna

There are broadly two resources for capital.
1. Internal resources: Plugging back of profits will comes
under Internal resources.

2. External sources: External sources can be classified in
to Equity capital and debt capital. Debt can be less costly
than equity capital since most interest rates are less than
what an investor would require as a rate of return

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