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प्रश्न
Differentiate between owned funds and borrowed funds.
अंतर स्पष्ट करें
उत्तर
Owned funds | Borrowed funds | |
1. | Owned funds refer to funds provided by the owners. | Borrowed funds refer to the funds raised through debentures and loans from banks, financial institutions, and public deposits. |
2. | Such funds provide 'risk capital' and remain permanently invested in the business. | Such funds are raised for specified periods at a fixed rate of interest. |
3. | Owners have the right to control how their businesses are managed. | Creditors who supply these funds have no authority over the business's administration. |
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Sources of Raising Capital
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