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  • Question
  • What are the advantages and the disadvantages of equity finance and debt finance to a company raising finance and investors?


  • Correct Answer
  • The advantage of equity finance for a company ? raising money by selling shares ? is that this money does not have to be repaid However, new shareholders usually get to have a say in how the company is run Despite these rights, equity is often seen as a risky choice for investors as they will lose all their money if the company doesn?t prosper If it does well, on the other hand, they may see their stake multiply in value many times over Debt finance ? money raised through loans ? must be repaid eventually by a company, usually with interest, but lenders won?t be able to exert as much influence as shareholders over how the company does business The debt of a reliable company is usually seen as a safe investment, but fixed repayment schedules means that there are few opportunities for large returns 


  • More questions

    • 1. How would you automatically transfer your visitors to a new web page?
    • Discuss
    • 2. The threshold limit upto which coins can be issued as per the Coinage Act 2011 ?

    • Options
    • A. 100
    • B. 200
    • C. 500
    • D. 1000
    • Discuss
    • 3. Cash Reserve Ratio ( CRR) and Stautory Liquidity Ratio (SLR ) are terms most closely related to which of the following industries/markets :

    • Options
    • A. Mutual Fund
    • B. Income Tax
    • C. Stock Exchange
    • D. Banking
    • Discuss
    • 4. What is the minimum period of time for which one can open an FD(Fixed Deposit) account ?

    • Options
    • A. 15 days
    • B. 6 months
    • C. 7 days
    • D. 1 year
    • Discuss
    • 5. Which Bank has been given scheduled bank status by RBI ?

    • Options
    • A. Disha
    • B. Suryoday
    • C. Janalakshmi
    • D. Ujjivan
    • Discuss
    • 6. Which class is used to indicate Black Navigation Bar ?

    • Options
    • A. .navbar-inverse
    • B. .navbar-black
    • C. .navbar-dark
    • D. .navbar-default
    • Discuss
    • 7. The journal entry to record a credit sale is

    • Options
    • A. Accounts Receivable
    • B. Accounts Payable
    • C. Both A & B
    • D. None of the above
    • Discuss
    • 8. What is CRR rate?
    • Discuss
    • 9. Which among the following are not access Specifiers in C++?

    • Options
    • A. Public
    • B. Protected
    • C. Default
    • D. Private
    • Discuss
    • 10. In which year, the first bank of India "Bank of Hindustan" was established ?

    • Options
    • A. 1677
    • B. 1770
    • C. 1796
    • D. 1831
    • Discuss


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