When owners put some cash or asset to start a business from personal resources. It is called capital or equity. Yes, its liability for our business but we classify it separate from other liabilities of business.
Equity financing relates to the funds that the owner(s) put into their business.
The reference given by Banjara bro is also defining equity or capital.
At the start of a business, owners put some funding into the business to finance operations. This creates a liability on the business in the shape of capital as the business is a separate entity from its owners.
On Sun, Dec 18, 2011 at 3:06 PM, Banjara <loveisluck2@gmail.com> wrote:
Liability
At the start of a business, owners put some funding into the business to finance operations. This creates a liability on the business in the shape of capital as the business is a separate entity from its owners. Refercence Qouted from--
On Sun, Dec 18, 2011 at 8:47 AM, fbvdh 1 <zeeshanmustafa1@live.com> wrote:--To start a business anything like cash or asset that you have arranged by personal pool fund is called
(a)equity
(b)Loan
(c)liability
(d)expense
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Regards,
Misbah Yousuf
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