Merits and Demerits of Equity Capital
Trending Questions
Q.
What is meant by 'partner by estoppel'? Explain.
Q.
Why is equity share capital called risk capital?
Q.
Write any three limitations of equity share capital.
Q.
Which type of business risk involves both the possibility of gain as well as the possibility of loss?
Q.
What Are the Different Instruments of the Capital Markets?
Q.
The cost of equity shares is generally more as compared to the cost of raising funds through other sources.
True
False
Q. The cost of equity shares is generally
- high
- low
- stagnant
- nil
Q. Equity capital is suitable for individuals who are willing to take high risk to receive
- high
- low
- stagnant
- zero
Q.
Give two merits of issuing equity shares.
Q.
Do equity shares provide creditworthiness to the company and confidence to prospective loan providers?
True
False
Q.
Do investors who prefer taking the risk for higher returns opt for investing in equity shares?
No
Yes
