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Please provide me with a quote for this question . Write an explanatory essay on capital. The essay should not exceed two typed pages. be sure to follow an essay format and cover all the relevant...

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Please provide me with a quote for this question .

Write an explanatory essay on capital. The essay should not exceed two typed pages. be sure to follow an essay format and cover all the relevant topics with regards to capital in an organisation.

Harvard system of referencing and a bibliography must be used.

Answered Same Day Dec 22, 2021

Solution

David answered on Dec 22 2021
126 Votes
Capital of the Organization

Introduction
The word Capital is used in many context. We are here concern with the capital funds in an
organization. Capital refers to the money invested in an organization by the promoters to ca
y on
the activities.
Generally, there are two ways in which an organization can finance any new projects or expand its
existing operations. These are the debt financing and equity financing. The corporate expansion or
increased research and development program can be financed by way of issuance of debt. The debt
can be defined as the funds obtained from the external sources like creditors, banks, lenders, issue
of bonds, debentures etc. which grants loan in lieu of regular interest payments. The most
commonly used way of raising funds for growth and expansion is to contribute funds in the
organization. The organization may raise funds from public, friends or relatives. In exchange of
funds ownership in the form of stock is given to them. These shares are called as common stock.
(Benjamin, 2008)
Type of Capital in an Organization

The Capital of the organization is divided into five parts namely:
1....
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