Aditi Gupta posted an Question
September 02, 2022 • 18:34 pm 30 points
  • UGC NET
  • Commerce

Borrowed funds and owner's fund... which one is more riskier?

borrowed funds and owner's fund... which one is more riskier?

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  • Muskan

    borrowed funds are more risky because owner is paid whatever is left after paying outside liabilities . but borrowed funds should be paid the full amount we have borrowed

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    Prof. dipak best-answer

    Both these capital sources have their own risks and rewards, but Owner’s Funds are the total amount invested by the owner of company compare to Borrowed Funds are business raises through loans from outside parties and they have to repay loan amount at the Fixed time or Fixed Obligation. that's why Borrowed funds is more riskier than Owner's funds. * I hope this explanation helpful for study *

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