Debit card and credit card are the types of plastic cards which are used for making payments online and using EFTPOS terminals on the point of sale. Both types of cards are issued by the same companies like VISA and Master card and are accepted all over the world. These cards reduce the need to … Read moreDebit card vs credit card
Fixed assets are critical for the operations of a business. These can range from high value assets used by manufacturing entities in their production process to lower value assets such as office equipment and furniture required by most entities. Several entities may not have the funding to purchase these outright. To fill this need, there … Read moreFinance lease vs operating lease
Businesses opt for debt funding in the form of loans when their internally generated funds are not sufficient or when they do not wish to dilute their equity through issue of shares. Individuals may also opt for loans to meet their personal or professional needs such as buying a car or a house or setting … Read moreSecured loan vs unsecured loan
Life insurance is offered by several insurance companies worldwide. It is insurance on the life of an individual which seeks to provide compensation to his nominees on his death. Life insurance is popular form of insurance opted for by individuals especially by those who have a dependent family so as to secure their future. Life … Read moreTerm life insurance vs whole life insurance
Every business owns different types of assets. Assets are essentially resources of the business that help the business generate monetary value or that can be converted into monetary value. To gauge its true financial health, the entity must know the value of its assets. This article looks at meaning of and differences between two different … Read moreMonetary assets vs non-monetary assets
Such stocks which possess more legal status than common stocks are known as preferred stocks. As in the name, preferred stockholders are preferred over common stockholders in terms of dividend payments. Unlike common stockholders, dividend payments of preferred stockholders are fixed and are carried forward in the following years, if company does not pay them … Read moreDifference between cumulative and non-cumulative preferred stock
Every big or small entity essentially requires funds to run its business smoothly and continuously. Funds are needed at all stages of the business right from formation of the entity to running its day to day operations to its expansion and growth plans. This funding raised and utilized by a business is referred to as … Read moreDifference between working capital and fixed capital
A company may opt for funding its business through capital contribution. The contributors of capital are called shareholders and receive a share of profit distributed by the company in the form of dividends. This mode of funding results in giving up part ownership of the company but is not accompanied by any fixed interest obligation … Read moreDifference between authorized share capital and issued & paid up share capital
Funding is a core need of most businesses. Funding can primarily take two forms – equity or debt. Equity involves transferring part ownership of the company to the funder in exchange for funds. Debt involves taking of loans or accepting of deposits, without partying with any part of ownership of the entity. In either case, … Read moreDividend vs interest
All businesses require funds to run their business operations. These funds can be internally generated by the business. If however, the business is unable to generate sufficient funds internally it may rely on external funds. Loans are a type of external funds can be availed from banks and other financial institutions. Loans may also be … Read moreDifference between fixed rate and floating rate of interest