Business
Distinguish between Ownership capital and Borrowed capital
Ownership capital consists of the amounts contributed by the owners as well as their profit re-invested in the business. It is the permanent capital, as…
Financial Enterprise
Business
What factors do determine the optimum capital structure?
The capital structure is how a firm finances its overall operations and growth by using different sources of funds. The optimum capital structure indicates the…
Business
Neither over capital nor under capital is good for an enterprise – Explanation
Over Capitalization is occurring when a firm cannot service its debt even though its debt/equity ratio is not excessive. It occurs when a company has…
Business
Export Finance
Export Finance The term export finance refers to credit facilities and techniques of payments at the pre-shipment and post-shipment stages. Export-Import Bank (EXIM Bank) extends…
Business
Venture Capital
Venture capital is a form of financing especially for funding high technology, high risk and perceived high reward projects. It provides funds to the entrepreneurs…
Business
Over Capitalization
Over Capitalization is occurring when a firm cannot service its debt even though its debt/equity ratio is not excessive. It is a situation in which…