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What is the difference between debt and equity?
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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 |
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