Advertisements
Advertisements
Question
______ is paid on borrowed capital.
Options
Interest
Discount
Dividend
Advertisements
Solution
Interest is paid on borrowed capital.
Explanation:
Interest is the amount paid for using borrowed capital. When a person or business takes a loan, they pay interest to the lender as a cost for borrowing money. It is usually calculated as a percentage of the principal amount.
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ is a smallest unit in the total share capital of the company.
Write a word or a term or a phrase which can substitute the following statement.
The holders of these shares are entitled to participate in the surplus profit.
Write a word or a term or a phrase which can substitute the following statement.
Name the shareholders who participate in the management.
Write a word or a term or a phrase which can substitute the following statement.
The value of share which is written on the share certificate.
Write a word or a term or a phrase which can substitute the following statement.
The value of share which is determined by demand and supply forces in the share market.
State whether the following statement is true or false.
Equity share capital is known as venture capital.
Complete the sentence.
The convertible preference share holders have a right to convert their shares into ______
Equity shareholders elect their representatives called ______.
Complete the sentence.
Bonus shares are issued as gift to ______
Answer in one sentence.
What are Equity Shares?
Answer in one sentence.
What are cumulative preference shares?
Distinguish between the following.
Equity shares and Preference shares.
State any 4 features of shares.
State the features of equity shares.
Give one word or phrase for the following sentence:
What is Share?
Explain the following term/concept in detail:
Equity shares
Justify the following statement.
Preference Shareholders get priority in dividends over equity shareholders.
