Question

HEYA GUYS GOOD MORNING ... Here's my question
DIFFERENCE BETWEEN OWNERS FUND AND BORROWED FUND...
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Answer 1

Explanation:

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Answer 2

Onwers funds vs Borrowed funds

(1) Meaning

Owner fund :- It means fund that raise owned capital

Borrowed fund :-. It means fund raises through borrowing from others .

(2) Permanent

owner Fund :- Permanent in nature

Borrowed fund :- Not permanent

(3) Risk

Owner fund :- Risk beared by enterpreneur

Borrowed fund :-. Risk not beared by enterpreneur

(4) Scope

Owner fund :-. Large in scope

Borrowed fund :- Smaller than owner fund

(5) Security :-

owner fund :- No need of any security of asset

Borrowed fund :- Need of security of asset to raise finance

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