Financial and accounting problems of public enterprises
Author(s)/Corporate Author (s)Bolsenkotter, Heinz;
United Nations. Economic and Social Council;
United Nations. Economic Commission for Africa;
MetadataShow full item record
We speak of equity financing if the enterprise is supplied with capital in form of money paid up on shares by the hitherto existing or new owners. The procuring of equity capital differs from the loan financing in that by the latter one can only acquire creditor rights but not participation rights. In consequence of the often close connection between the public enterprise and its public owner or owners one might divide the outside financing again according to the origin of the equity capital that is if the equity capital comes from one or from several owners of the enterprise. Accordingly one speaks of an enterprise owned by "only one corporation in the first case and of a mixed enterprise in the second case.