differeance between owners fund and borrowed fund oon the basis of 1 concept 2 duration 3 control in management 4 obligation 5 risk involved 6 priority 7 tax deductible 8 stability of earning ansssss plssss needed fast asap
| Basis | Owner's funds | Borrowed funds |
| Concept | Finance procured from owners of an enterprise | Finance procured through loans or borrowings |
| Duration | Firm can use these funds for a fairly long period of time | These funds can be used for relatively shorter period as they have to be paid back after a particular period |
| Control in management | Can exercise their voting rights to control management | They have no voting rights |
| Obligation | Obligation to pay fixed returns is not there in case of owner's funds | Fixed rate of return is payable as an obligation on borrowed funds |
| Risk involved | High risk is involved in these funds as their return is dependendent on profitability of the business | Low risk is there as these funds are usually backed with an asset as collateral security |
| Priority | Dividends on owner's funds are paid after the interest payments to borrowed funds | Interest on borrowed funds are paid prior to dividend paid on owner's funds |
| Tax deductible | It is not tax deductible | It is tax deductible |
| Stability of earnings | Returns on owner's funds fluctuate with variations in the profitability of business operations. | Returns are stable and consistent |