What is the main difference between debt and equity investment?
Answer and explanation
Correct answer: ऋण लौटाना पड़ता है, हिस्सेदारी में स्वामित्व बाँटना पड़ता है
Debt is borrowed finance that normally carries a repayment obligation and may include interest, while lenders do not normally receive ownership merely for lending. Equity finance involves giving investors an ownership interest, so control and future returns may be shared. Actual terms vary, but debt and equity are not identical or automatically unconditional.
Frequently asked questions
What is the correct answer to this question?
ऋण लौटाना पड़ता है, हिस्सेदारी में स्वामित्व बाँटना पड़ता है
Why is this the correct answer?
Debt is borrowed finance that normally carries a repayment obligation and may include interest, while lenders do not normally receive ownership merely for lending. Equity finance involves giving investors an ownership interest, so control and future returns may be shared. Actual terms vary, but debt and equity are not identical or automatically unconditional.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Owner’s Funds.
