Why equity capital is called Permanent Capital?

equity is called the permanent capital of the business becoz it always remain invested in the business . it is not refundable like any other borrowed fund. a large part of equity can be used to acquire assets of the business.there is no compulsion of the business to pay dividend to the equity shareholder.
  • 8
Because it can only be redeemed at the time of winding up of a company.
  • 4
Please find this answer

  • 0
Becz it is a long period capital .
  • 0
What are you looking for?