asked 225k views
5 votes
“A business organization requires both long term and short term capital which can

either be on the form of ownership capital and borrowed capital.” Comment upon

the statement with hypothetical example.

asked
User Aliva
by
8.3k points

1 Answer

2 votes
the example of ownership capital is : Shares

Shares determine that you have a part of percentage of the company (you will also get part of its income)

Example of Borrowed capital is : Leasing.
Leasing is a rental agreement in which you can borrow goods that you can use for your production process

hope this helps
answered
User Antiguru
by
8.2k points
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