If we contribute funds to our company, then we will be awarded shares of
ownership (stockholders).
By investing our funds in our company, we hope the business uses our investment to
generate profits.
Choose an answer
Legal Rights for Equity Investors
Contractual Agreements for Lenders
Financial Obligations for Debt Investors
Legal Responsibilities for Creditors
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, Terms (26)
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Equity Inestors
Contributions from Owners (for a corporation = stockholders). Earnings retained from profitable
business operations (Retained Earnings).
Debt Investors
Creditors of the business, such as a bank, bond holders, leasing companies.
Reported as current "liabilities" or "long term liabilities" on the financial statements.
Both Principal & Interest must be paid.
ownership (stockholders).
By investing our funds in our company, we hope the business uses our investment to
generate profits.
Choose an answer
Legal Rights for Equity Investors
Contractual Agreements for Lenders
Financial Obligations for Debt Investors
Legal Responsibilities for Creditors
Don't know?
, Terms (26)
Hide definitions
Equity Inestors
Contributions from Owners (for a corporation = stockholders). Earnings retained from profitable
business operations (Retained Earnings).
Debt Investors
Creditors of the business, such as a bank, bond holders, leasing companies.
Reported as current "liabilities" or "long term liabilities" on the financial statements.
Both Principal & Interest must be paid.
