English

______ is paid on borrowed capital.

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Question

______ is paid on borrowed capital.

Options

  • Interest

  • Discount

  • Dividend

MCQ
Fill in the Blanks
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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.

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Sources of Owned Capital - Shares
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Chapter 2: Sources of Corporate Finance - Exercises [Page 34]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 2 Sources of Corporate Finance
Exercises | Q 1. A) 10. | Page 34

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