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Question
Explain the following term/concept.
Owned capital
Short Note
Solution
(a) The capital raised by the company with the help of owners (shareholders) is called owned capital or ownership capital. Owned capital is regarded as permanent capital, as it is returned only at the time of winding up of the company.
(b) Owned capital can be raised in the form of Shares, i.e, Equity and Preference Shares, and Retain Earning.
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Sources of Owned Capital
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