What are the similarities and differences between equity capital in investor owned firms and fund capital in not for profit firms
Document Type:Essay
Subject Area:Health Care
in both the balance sheet indicate equity as a small representation of organization status within a period of time. This is done through stating the investment pumped in, the owned and owed. For the profit making business the assets include that major valuable items such as equipment, buildings furniture and other security deposits. For nonprofit making organization the assets owned are not complicated. The assets in major cases are represented by the raised funds. Still can be owned by outside individuals who are the major shareholders. The investor- owned firms can raise their equity capital through different means. They can retain their earnings or sell common shares. The retained earning refers to the profit made by the company to date, less dividends and other payment supposed to be made to investors.
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