Advertisements
Advertisements
प्रश्न
Explain the features of Interest.
उत्तर
MEANING
- Interest is a payment made for using money of another person.
- Borrower takes money from the lender. Thus, for borrower, interest is the cost of renting money and for lender, interest is the income from his lending money.
- Company has to pay interest if it has borrowed money from creditors like Debentures holders, Depositors, Bond holders, etc.
FEATURES
- Interest is the price paid for the productive services rendered by capital.
- It is directly related to risk. The higher the risk, the higher is the interest.
- Rate of Interest is expressed as an annual percentage of Principal.
- The rate of interest is determined by various factors like money supply, fiscal policy, the volume of borrowings, rate of inflation, etc.
- Interest is a charge against the profit of the company. Even if the company makes no profit, interest should be paid.
- It is payable at a fixed and generally pre-determined rate. The company has to pay interest if it has borrowed money from creditors like Debentures holders, Depositors, Bondholders, etc.
APPEARS IN
संबंधित प्रश्न
______ is a return paid to creditors by the company.
Write a word or a term or a phrase which can substitute the following statement.
The return paid to the creditors by the company.
State whether the following statement is true or false.
Interest is a liability for company.
State whether the following statement is true or false.
Interest is paid to shareholders of company.
Complete the sentence.
The obligatory payment made by company to its creditors is called as ______.
Select the suitable option for the following.
Interest ____________.
Select the suitable option for the following.
____________ Final Dividend.
Select the suitable option for the following.
Deposit Holders ____________.
Answer in one sentence.
What is Interest?
Correct the underlined word and rewrite the following sentence.
Interest is paid to shareholders.
Explain the following term/concept.
Interest
Distinguish between the following:
Dividend and Interest
Justify the following statement.
Interest is a liability/obligation of the company.
Answer the following question.
What is Interest? Explain its features.
The reward given for the use of capital
What do you mean by interest?
