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What is a borrowed capital?

Updated: 9/15/2023
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14y ago

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it is that amount of capital which is borrowed by the entrepreneur(s) from the bank or other financial institutions etc.

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14y ago
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What is the difference between owned and borrowed capital?

Owned capital are amounts or resources that belong to the owner or owners of a business. Borrowed capital are amounts or resources that are loaned to the owners of the business by an outside person or organization.


The amount of money deposited or borrowed is the?

It is sometimes called the capital.


Can you site the difference of finance and financial management?

Finance is a term to denote capital for a business organisation . The finance term denote possible mode of procuring money to run an enterprise .Finance can be own capital, borrowed capital, or capital generated by saving profits.Financial management represents how finance is procured based on finance policy ,i. e how much own capital & how much borrowed capital , how much allocated for fixed assets & current assets, out of current assets how much in raw materials stock , etc. financial management in nutshell speaks of procurement , allocation , usage & efficiency targeted in dealing with finance to an enterprise.


What is the risk of loan capital?

Loan capital, also known as borrowed capital, is business funding secured from a financial institution or finance company. Some of the risks of using loan capital are high-interest rates, tying up company money to repay the loan that could be better used for expansion and the perception that a company is in trouble, undermining their credibility.


How much cash and collateral would be required for a loan to buy a well-established business for a half million dollars?

YOU NEED (BALLPARK) 100K OF YOUR OWN CAPITAL (MEANING NOT BORROWED FROM THE BANK Capital) and you need the business' financial documents to prove that past revenue is about 3 times that loan payment

Related questions

What are capital expenditure?

Unfinanced means that the money was not borrowed from anyone. Capital expenditures is money spent on buildings and equipment. Therefore, unfinanced capital expenditures is money spent on buildings and equipment that is not borrowed.


What is the difference between owned and borrowed capital?

Owned capital are amounts or resources that belong to the owner or owners of a business. Borrowed capital are amounts or resources that are loaned to the owners of the business by an outside person or organization.


What are unfinanced capital expenditures?

Unfinanced means that the money was not borrowed from anyone. Capital expenditures is money spent on buildings and equipment. Therefore, unfinanced capital expenditures is money spent on buildings and equipment that is not borrowed.


The amount of money deposited or borrowed is the?

It is sometimes called the capital.


What is the journal entry for starting a business with money which is borrowed from a friend and husband?

debit cashcredit capital


What is the difference between share capital and working capital?

Share capital is equity in the company. It is money raised by the company in exchange for issuing ownership of shares. Working capital is the money that is borrowed from a bank for a business to pay operating expenses.


Camera cost 1138.00 you made a 25 percent down payment and borrowed the rest repaid the loan in 18 payments of 51.60 each how much was the interest charge on what you borrowed?

If you figures are correct you did not pay any interest you did not even repay all the capital.


Can you site the difference of finance and financial management?

Finance is a term to denote capital for a business organisation . The finance term denote possible mode of procuring money to run an enterprise .Finance can be own capital, borrowed capital, or capital generated by saving profits.Financial management represents how finance is procured based on finance policy ,i. e how much own capital & how much borrowed capital , how much allocated for fixed assets & current assets, out of current assets how much in raw materials stock , etc. financial management in nutshell speaks of procurement , allocation , usage & efficiency targeted in dealing with finance to an enterprise.


What is the risk of loan capital?

Loan capital, also known as borrowed capital, is business funding secured from a financial institution or finance company. Some of the risks of using loan capital are high-interest rates, tying up company money to repay the loan that could be better used for expansion and the perception that a company is in trouble, undermining their credibility.


What is the verb phrase in the sentence She should not have borrowed your dress?

The verb phrase is "should have borrowed."


What is the noun of interesting?

The noun 'interest' is a singular, common, abstract noun; a word for a desire to know or learn; a right, title, or legal share of something; a charge for borrowed money or the profit made on invested capital.


What is the verb phrase in this sentence She should not have borrowed your dress?

Have borrowed