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 the company is not under compulsion to repay the amount…

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 best debt-to-equity ratio for a firm that maximizes its value.…

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 issued more debt and equity than its assets are worth.…

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 finance to exporters and to overseas joint ventures and construction…

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 following new and hitherto unexplored avenues and ideas. It is…

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 a company has too much capital. Before going to define…