What is the difference between debt and equity?
Answer Posted / 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 |
Post New Answer View All Answers
What is RBI's role in developing the Indian Economy?
What are FDI (Foreign direct investment) and FII (Foreign institutional investors) and what is the difference in these?
What is Kisan Credit card?
What do you mean by amortization and impairment?
How is the RBI Lender of last resort?
Why banks are nationalised?
Which committee had worked for the recapitalisation of regional rural banks (rrb’s)?
What do you know about Demonetization Bill introduced in Lok Sabha?
What is 'smart card'?
Are You A Reliable Person With Strong Work Ethics?
Explain the weak-form, semi-strong from and strong-from of efficiency?
What is the cost of debt?
Difference between P&L Account and Balance Sheet?
How Much Does It Cost To File Bankruptcy?
What is Monopolistic Competition?