Sources of Corporate Finance



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Contents

Sources of Owned Capital


Description: Equity shares, retained earnings, preference shares, venture capital, initial public offering, partner's contributions.


Sources of Borrowed Capital


Description: Banks, financial institutions, debentures, bonds, trade credit, external loans, public deposits, commercial papers.


Owned Capital vs Borrowed Capital & MCQ's


Description: Owned is permanent, no repayment, earns dividends. Borrowed is temporary, repayable with interest, increases liabilities.


Preference Shares & Retained Earnings


Description: Preference shares offer fixed dividends, while retained earnings fund growth and reduce debt.


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