5 Questions
What are the two forms of owned capital mentioned in the text?
Equity shares and retained earnings
Which of the following is considered an external source of finance?
Debentures
What is the difference between external and internal sources of finance?
External sources involve raising capital from outsiders, while internal sources involve obtaining capital from within the organization.
Which type of capital is raised by the company with the help of owners (shareholders)?
Owned capital
What form does owned capital take when shareholders purchase shares of the company and supply necessary capital?
Equity shares
Test your knowledge on the various sources of corporate finance, including owned capital such as shares and retained earnings, and borrowed capital such as debentures, bonds, and trade credit. Explore the importance of finance in business activities and the distinction between different sources of funding.
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