Question

name and explain the different types of capital with examples

Answer 1

Capital is used by a corporation to finance its assets, daily operations, expansion and other activities that require financing beyond what can be provided by its on-going returns. The types of financing available to corporations are extensive and each form of capital has a different set of conditions and rules associated with it. Understanding the variety of capital types available is pertinent when weighing the pros and cons of each. Keeping these pros and cons in mind becomes imperative to making responsible choices when seeking financing options for a corporation’s continued growth.

Examples of Capital types:

Working Capital
Equity
Senior Debt
Mezzanine Debt
Alternatives