NCERT · Class 11 · Business Studies · Sources of Business FinanceWhich of the following is considered as 'owner's funds' in business finance?
Step-by-Step Solution
Equity shares are considered owner's funds because equity shareholders are the owners of the company and bear the ultimate risk of the business. They provide permanent capital and do not carry a fixed rate of return.
Detailed Options Breakdown
Option : Debentures
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 1: Equity Shares (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Bank Loans
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 3: Public Deposits
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
💡 Study Guide: This question tests core syllabus concepts from Sources of Business Finance. For formulas, key summaries, and mock exam reference guides, read the full Sources of Business Finance Revision Notes.