Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit.
Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company.
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Check out the related link to see the difference between capital expenditure and recurrent expenditure as well as some examples.
Preference share capital is that type of capital which receives the fixed percentage of profit no matter if company earns profit or loss and it has preference over all other kind of share capital. EQUITY CAPITAL is that capital which have right to profit after all other kind of liabilities payment and only receives profit if company earns profit.
what is the defference between physical concept of capital and financial concept of capital
Gross working capital is the amount company invested in current assets while net working capital is the difference between current assets and current liabilities.
capital income is the money raised to set up a new business or expand an existing one and revenue income is the money generated by a business as a result of its day to day operations
Preference share holders have preference over common stock holdres in dividend distribution as well as in terms of capital invested.
Check out the related link to see the difference between capital expenditure and recurrent expenditure as well as some examples.
Preference share capital is that type of capital which receives the fixed percentage of profit no matter if company earns profit or loss and it has preference over all other kind of share capital. EQUITY CAPITAL is that capital which have right to profit after all other kind of liabilities payment and only receives profit if company earns profit.
Preference share holders have preference over common stock holdres in dividend distribution as well as in terms of capital invested.
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
difference between temporary and permanent working capital needs
Paid in capital includes the preference share capital as well as common share capital as well.
what is the defference between physical concept of capital and financial concept of capital
1)Preference Shares have 2 preferences first payment of dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders. 2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company. 3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders.
Ordinary shares are those which issue to normal shareholders which are last in payment priority list and only receives dividend in case of profit and liquidity is good. Preference share has preference over payment form common share capital and it receives fixed percentage of interest even in case of loss to business.
Gross working capital is the amount company invested in current assets while net working capital is the difference between current assets and current liabilities.