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What is the difference between debt and equity?
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Answer Posted / ravi
debt means agreeing to pay the amount for which we have taken
loan but where as in the case of debenture the company has
to pay to the debenture holder irrespective of profits where
as they get fixed rate of intrest as they dont nhave voting
rights at the time of liquidation they will be giving the
first preference
equity are the owners of the company where the dividend will
be declared out of profits they has right to participate in
the meetings having voting rights at the time of liquidation
they will be getting last preference
| Is This Answer Correct ? | 1 Yes | 6 No |
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