0
It is certainly a financing activity to the business or company. Just like debentures taken or any other source of financing. it is in a way money owed by the business to the promoters or shareholders to finance the company's activities. however, to the shareholders or promoters of a business it is an investing activity
Add your answer:
Earn +20 pts
What is the difference between owner capital and owner equity?
Capital (more specifically working capital) is the combined sum of owner's equity and external financing (loans and other debt financing). Owner's equity is the part that the owners have contributed, by whatever means.
What do you understand by venture capital?
Venture capital is a means of financing high technology projects. A point of clarification: venture capital is not limited to financing high technology projects. One may find venture capital in all market segments of our economy.
Roles of capital market in industral financing?
How can the role of capital market help in financing an industry.
What is contributed capital?
Capital received from investors for stock, equal to capital stock plus contributed capital. also called contributed capital. also called paid-in capital.
What is the matching principle of working capital financing?
An all equity capital structure would be the most conservative type of working capital financing plan approach. The more long-term financing used the more conservative the financing plan, and equity is permanent financing.
Would cash received from stock sold be classified as a financing activity on the statement of cash flows?
Yes, Cash received from issuance of new capital is cash flow from financing activities in cash flow statement.
Who provide venture capital financing in Sri Lanka?
Lanka Ventures PLC provide the capital financing in Sri Lanka..
Where can one find information about capital one auto financing?
Information on how to apply for Capital One auto financing is available on their website. You can read reviews for Capital One auto financing on Credit Karma and Lending Tree.
What are the sources of capital formation for small and medium scale enterprises?
Venture Capital market, equity financing (which could be through public stock offering or private placements ), informal risk capital (called angel financing) and debt financing.
You need money to start your own company this is known as?
A. debt financing. C. equity financing. B.seed capital. D. venture capital. B seed capital PG 202
Sister organization of the World Bank helps private activity in developing countries by financing projects with long-term capital in the form of equity and loans?
International Finance Corporation
What is the advantage of investing in social capital for a firm?
The biggest advantage of investing in social capital by a firm is the goodwill that the investment shows the community involved. Many companies invest social capital into the communities of which they are headquartered.
