Owned Capital and Borrowed Capital

Easy way to learn and memorized  – Notes for class 12th std , Distinguish between owned Capital & Borrowed Capital – Point of Discussion  class 12th std , S.P – Notes of role of secretary in capital formation – Difference between owned capital & borrowed capital , point of discussion –  owned Capital and Borrowed Capital  –  Secretarial Practice – Notes,  & Distinguish Between– Difference between, Study material, studies notes, study notes. According to the New Textbook for HSC Board 

Owned Capital Borrowed Capital

Sr.NoPointOwned CapitalBorrowed Capital
1. MeaningThe funds collected by a company through issue of equity shares and preference shares and plough back of profit are called owned capital.The fund collected by a company through the issue of debentures, accepting public deposits and borrowing from the banks and financial institutions are called borrowed capital.
2.Return on investmentThe contributors to the share capital get dividend as the return on their investment.The contributors to the borrowed capital get interest as the return on their investment.
3.Status of supplierThe contributors to the owned capital are the co-owners or the joint owners of the company.The contributors to the borrowed capital are the creditors of the company.
4.Voting RightsThe contributor to the owned capital has a right to vote at the general meetings on all the matters.The contributor to the borrowed capital does not have voting rights
5.RedemptionRepayment or redemption of the owned capital is made only at the time of the winding-up of the company. Repayment or redemption of the borrowed capital is made on the maturity or redemption date.

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