Debenture holders are called______of the company.
A person having the debentures is called debenture holder whereas a person holding the shares is called shareholder. A shareholder or member is the joint owner of a company; but a debenture holder is only a creditor of the company. Shareholders are invited to attend the annual general meeting of the company.
The maturity period of commercial paper usually ranges from
Commercial paper is a commonly used type of unsecured, short-term debt instrument and it maturity usually ranges from 90 days to 1 year.
Which one of the following is NOT the disadvantage of raising funds through debentures?
IDRs are issued in
Indian Depository Receipt (IDR) is a financial instrument denominated in Indian Rupees in the form of a depository receipt. The IDR is a specific Indian version of the similar global depository receipts. It is created by a Domestic Depository (custodian of securities registered with the Securities and Exchange Board of India) against the underlying equity of issuing company to enable foreign companies to raise funds from the Indian securities Markets. The foreign company IDRs will deposit shares to an Indian depository. The depository would issue receipts to investors in India against these shares. The benefit of the underlying shares (like bonus, dividends etc.) would accrue to the depository receipt holders in India.
Under the lease agreement , the lessee gets the right to
Working capital is raised through
Working capital is what fuels every business. And the mantra behind having sufficient funds is to strike the right balance between your assets and your liabilities.
Trade credit: It’s important to maintain a good rapport with your trade creditors. They provide trade credit in the form of business supplies and equipment that can be paid for at a later date.
Commercial Paper is one of the modes of raising the funds for short term purpose. Commercial Papers fulfil the short-term capital requirement of the Corporate and diversify the source of financing.
One of the most common alternatives businesses for needing liquidity is factoring, which involves a third party, the factor, purchasing corporate account receivables and providing nearly the full outstanding invoice amount as immediate cash to cover urgent commitments, operational activities and to develop the business.
Preference shares do not carry preferential rights over equity shares regarding
Which one of the following is known as the Risk capital?
Equity is more risky as copared to preference share bacause the dividend is paid to Equity shareholder after the payment of preferece shareholder. secondly in case of winding up of the company the capital is refund to preference shareholder then after to equity shareholder.
Under the factoring agreement, the factor
Internal sources of capital are those that are generated through
Internal sources of finance are funds found inside the business. For example, profits can be kept back to finance expansion.