Main sources of

capital for a business

capital
Jayakrishnan P
Commerce
 Capital

✔ A capital is the blood of business

✔ Capital plays an important role in business
✔ Failure of capital leads to failure of business

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 Capital
Current Capital Borrowed Capital

Preference share capital

Equity share capital

Debentures Loans

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 Owners Capital
Owners Capital is that which are raised by using shares. Shares
are of two types They are:-

1) Equity share 2) Preference share

 They have voting right • They don’t have voting right
 Owners of the business • These share are not liable for
 High level of risk loss of the business
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 Borrowed Capital
Borrowed Capital are those capital which are received from
financial institutions and public. Borrowed Capital are of two
types they are:-
1) Loans
2) Debentures
 Received from banks
and other financial  Received from the
institutions public
 Fixed rate of interest  Fixed rate of interest
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Thank You

Jayakrishnan P
Commerce Department