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Why Should a Business Use Equity Capital

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Why should a business use equity capital?


Definitions:

Non-controlling Interest

The portion of equity interest in a subsidiary not attributable, directly or indirectly, to the parent company.

Financial Position

A statement or status of an entity’s resources, liabilities, and equity at a particular point in time, illustrating its economic standing.

Equity Section

The section of a company's balance sheet that represents the residual interest in the assets of the entity after deducting liabilities, including items such as share capital, retained earnings, and reserves.

Pre-acquisition Entry

Accounting entries recorded to prepare the accounts for the consolidation process, reflecting adjustments necessary prior to acquisition.

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