What is capital structure and how to identify whether the company is more on debt or equity financing?
Q. Can you please explain what is the reason that cause the company's capital structure is more on debt financing and why?Also,explain what is the reason that cause the company's capital structure is more on equity financing and why?
Asked by YK - Mon Mar 23 04:59:14 2009 - - 1 Answers - 0 Comments

A. Debt Finance - Pros -Maintain control of the company -No stock issuing costs -No regulatory requirements Cons -Poorer net asset position -Interest -Can be difficult to obtain large loans Equity Finance Pros -Can obtain alot of money within a relatively short time -No interest payments -Maintain liquidity and asset ratios Cons -Strict regulations for public companies -Transfer control to shareholders -Large brokerage fees Just a few off the top of my head
Answered by Chuckles McGee - Mon Mar 23 06:00:35 2009

How much capital would be possible to borrow to start a business?
Q. I'm going to need quite a bit of capital but I don't want to have investors, so how much money could I borrow from a bank in an ideal situation. Also is there any other way to get capital without investors?
Asked by Monsieur London - Mon Jun 16 20:22:57 2008 - - 3 Answers - 0 Comments

A. No lender will talk to you unless you provide them with a valid business plan. Go to , or for sample business plans and instructions on how to write a business plan. Then, go to and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to review your business plan and discuss various loan options available to you. SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA). SCORE has 389 chapters in locations throughout the United States… [cont.]
Answered by Robert E. Lee - Tue Jun 17 08:28:30 2008

What are the different ways in which capital can be transferred from suppliers of capital?
Q. What are the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital.
Asked by angel_rat_83 - Thu Jun 28 16:13:31 2007 - - 1 Answers - 0 Comments

A. Through the curcular graph. From households, to firms, to...
Answered by bugsbunnylookalike2001 - Thu Jun 28 16:58:36 2007

What's the difference between capital stock and retained earnings?
Q. I am stuck using the accounting equation... When you pay rent it decreases cash but does it decrease capital stock or retained earnings? If you receive cash for fees earned, it increases cash but does it increase capital stock or retained earnings? If you pay salaries does it decrease retained earnings or capital stock? If you pay dividends it decreases cash but what else? If you pay interest what does it decrease? These are questions in the book that it says I should know how to do but I don't. If you feel that you don't want to give me the answers, than just tell me how? PLEASE, THANKS.
Asked by italia1091 - Mon Dec 22 02:07:18 2008 - - 1 Answers - 0 Comments

A. When you pay rent, it decreases cash and increases a rent asset, or it decreases a rent liability if rent were paid after the fact. Retained earnings doesn't decrease. It is merely a running total of the profit that the company keeps at the end of each accounting year. It is only changed once per year after you close out your accounts, so it won't change when all of these little accounts change mid-year. Capital stock and retained earnings have nothing to do with the items posted, but I'm not sure about the dividends one. I don't know what other account would be affected.
Answered by willwork4food89 - Mon Dec 22 02:15:57 2008

What exactly is venture capital and what are some of the more popular/well known vc firms?
Q. I am doing a project for my microeconomics class an venture capital. I have been searching and searching for some lists of popular/well known venture capital firms. What vc firms have been unsuccessful? Any help would be great! Thanks for your time!
Asked by lwr - Thu Jun 11 16:30:52 2009 - - 1 Answers - 1 Comments

A. Venture capital is the investment of money into business ventures by companies setup for that purpose. They don't lend the business venture money, they give them money in exchange for an ownership stake (stock). The National Venture Capital Association (nvca.org) has a lot of information including a listing of members. Also, Entrepreneur magazine published a top 100 VC list:
Answered by In Science we trust - Thu Jun 11 22:36:48 2009

What is the allowable capital gain on the sale of my primary residence before I have to pay capital gain tax?
Q. I've heard that for selling my primary home that I've owned for some time, I can make a $500K profit before having to capital gain taxes, is that correct?
Asked by Peter C - Sun Jan 6 00:47:47 2008 - - 1 Answers - 0 Comments

A. If you are married and lived in and owned the house two of the five years before you sell, the first $500,000 in gain is tax free. It is $250,000 if you are single.
Answered by Wayne Z - Sun Jan 6 00:59:51 2008

Why was the southern capital near the north in the civil war?
Q. I know the capital is in Richmond Virginia. And I also know that Virginia was the richest confederate state. But why was the southern capital so near the north?
Asked by someone - Sun Jun 13 02:21:36 2010 - - 2 Answers - 0 Comments

A. Probably because Virginia had the greatest population of any state in the south.
Answered by joel_vannatta - Sun Jun 13 02:29:34 2010

Is the tax rate higher for income or capital gains?
Q. I've already accumulated about $45,000 in short term capital gains this year. I need to liquidate another $40,000 in stocks or sell part of an inherited IRA which, as I understand, will be taxed as income. Is the tax hit going to be the same either way? Last year I had taxable income of about $53,000 with next to no capital gains. This year I expect about the same taxable income plus the capital gains.
Asked by xmasboy - Mon Nov 5 10:47:35 2007 - - 3 Answers - 0 Comments

A. Short term cap gains are taxed as ordinary income. LT gains are at a 15% rate, but that is set to expire in a few years (irrelevant to you). BTW, how did you get those kinds of gains? Time to share, LOL!
Answered by redwine - Mon Nov 5 10:53:46 2007

How does capital gain tax work on selling 1st house?
Q. We bought and lived in a house for about 1year before moving out of state for job reason. We later bought another house in the new state, while keeping the first house. It has been 2 years since then, and now we plan to sell the first house. The first house has never been a rental property. How does capital gain tax work when selling the 1st house? Thanks.
Asked by HartMen - Tue Feb 19 01:49:31 2008 - - 6 Answers - 0 Comments

A. You can each exempt $250,000 from capital gains, or $500,000 total gain from the sale.
Answered by cajunbiggeorge - Tue Feb 19 01:58:06 2008

Can I offset a realized capital loss against mutual fund capital gain distributions?
Q. This is the year for losses, it appears. But some of my mutual funds are still paying capital gain and income distributions. Can I offset the losses?
Asked by Dumb shopper - Sat Jul 12 15:18:46 2008 - - 2 Answers - 0 Comments

A. yes and you can carry any loss in excess of the gain to you 1040 up to $3000. Losses over that amount must be carried to the following year.
Answered by Charlie & Angie G - Sat Jul 12 15:32:25 2008

How much capital gains taxes will I owe under these special circumstances?
Q. I need help. I've done tons of research but neet to know if anyone can point to to a definite answer. I spent 17 months building a house only to find out 2 weeks before closing on it that my husband was being let go from his job. He works in a highly specialized feild and we had to move to another state to find work for him. Needless to say we sold put the house up for asle the same day we closed on it. We bought it for 398k and since it too 17 mos to build sold it for 560k. We owned the home for 3 months before we sold it. My question is are we eligible for any kind of tax break on the capital gains because of the unforeseeable circumstances (moving for a job)? The irs mentions this, but doesnt go into detail. I need to know so i can plan… [cont.]
Asked by T - Fri Oct 13 15:48:00 2006 - - 10 Answers - 0 Comments

A. This is a large enought sum of money you want want to consult a tax attorney or a certified account as to the best options for your tax situation. You should definenenlty read publication 523 from the IRS as it deals with sale of residencts. Here are some tips from the irs website. According to the IRS: Sale of Residence You may qualify to exclude from your income all or part of any gain from the sale of your main home. Your main home is the one in which you live most of the time. Topic 701 - Sale of Your Home If you have a gain from the sale or exchange of your main home, you may be able to exclude from income all or part of the gain, please refer to Publication 523 for more information on the gain exclusion. The exclusion may be… [cont.]
Answered by Gigs - Fri Oct 13 15:58:38 2006

How do I stop unsolicited Capital One applications coming to my old address?
Q. Of all the stupid mailers, this one worries me the most! Capital One continues to send 'pre-approved' applications to me, but they go to my old address. Junk mail is one thing, but this is a risk to my credit as far as I'm concerned. Were it not for an honest tenant who gives them to me along with other junk mail that still finds it's way to his door - where I used to live over 2 years ago! - it could otherwise be possible for some crook to sign the app off in my name and risk my credit rating being compromised! Nearly every 6 months - like clocwork, that application is delivered. I live in Canada and am unaware of any government campaign available to opt out of this stupid mailer. And I've even returned the app with 'Not Interested'… [cont.]
Asked by Volksfox89 - Wed Aug 29 01:32:16 2007 - - 2 Answers - 0 Comments

A. You can opt out of mailing offers for credit cards and insurance. If that don't work, my personal revenge would be to take the business reply envelope and tape something heavy to the envelope like say...a brick, after shoving the application back into the envelope. Write "not interested" in a permanent marker on the brick. Mail the brick to them. They have to pay for that postage. I can almost guarantee you that mailing a brick will get someones attention. They should never send another application again.
Answered by Richard_CA - Wed Aug 29 02:50:40 2007

How do you estimate what your capital gains tax would be on investment property?
Q. This is a difficult situation. We own a piece of undeveloped land in FL and are considering selling to put a down payment on a house in CA. We have owned it for about 14 years. My husband is military and a FL resident. We currently are stationed in CA and I am a CA resident. The land is a joint tenancy. FL doesn't have a capital gains tax, but CA does. So I am guessing that we have to split the gain 50/50 and have 50% taxed by the state of CA. We are trying to use an online capital gains tax calculator to figure how much we will have to pay. We had an assesment to pave the street. Would that be an improvement cost? Also, the state bought a small portion to widen a highway. Would the money they paid us be deducted from the… [cont.]
Asked by Sus - Tue Aug 14 23:55:16 2007 - - 2 Answers - 1 Comments

A. If you file a joint CA return, ALL of the gain is subject to CA tax. If you file a separate return, only your half of the gain is taxed. The entire gain is subject to Federal capital gains tax. The assessment raises your cost basis and therefore will lower the gain. What the state bought constitutes a sale of part of the property. That was a taxable event when it occurred. You may or may not have taxable gain that needs to be claimed in the year of the sale. It will reduce your basis for the remaining portion of the property as well. Land is never depreciated. No tax impact with that. Since the property was held for over one year, the tax rate is 15% unless your marginal rate is 15% or less in which case it would be 5%. (Had… [cont.]
Answered by Bostonian In MO - Wed Aug 15 00:05:04 2007

What is capital in business, do we have capital every year?
Q. When do we have /put capital in business, is it the first fund or whenever we put cash from outside to the business is called capital?
Asked by scatzscatz - Thu Apr 9 11:20:16 2009 - - 2 Answers - 0 Comments

A. Capital is the initial start up funds put into the business, plus any other funds introduced.
Answered by Onestep downfrom God - Thu Apr 9 17:41:01 2009

Whats the best way to gain capital for your business as a minority?
Q. I have a friend in North Carolina looking for assistance with gaining capital for the business. It is a painting business, and they are looking for any way to gain capital without really taking out any loans. Does anyone have any suggestions?? What about with government contracts or any contacts for type of work?? Any infor would help.
Asked by shonnypooh - Tue Apr 28 16:06:11 2009 - - 1 Answers - 0 Comments

A. the government has authorized stimulus funds for small business. try searching the .gov site for stimulus funds. I also have a few other ideas if you want feel free to email me.
Answered by Ravyn - Tue Apr 28 16:14:02 2009

Approximately how much capital would be needed to start an arts and designs business?
Q. It is a business selling art designs on t-shirts, CDs, DVDs, selling facial portraits of people, tattoo designs etc. How much capital would be needed to at least fund this business for the first year? And why would these funds be needed anyway?
Asked by Ryder - Mon Mar 17 19:06:47 2008 - - 1 Answers - 0 Comments

A. Go to and download the Excel template for estimating start up costs.
Answered by Henry - Mon Mar 17 20:25:49 2008

In terms of capital appreciation and rental potential where is the best overseas market to buy property?
Q. With property in UK so expensive I am thinking about buying overseas but not sure where.I am first time buyer and would like to rent property to help with mortgage and hopefully enjoy capital growth on the value of the house.Any tips /advice?
Asked by gazhumphrey - Mon Apr 16 09:42:10 2007 - - 3 Answers - 0 Comments

A. I would suggest Vancouver, Canada. Purchase a condo downtown - the vacancy rate is below 1%, and the rents are relatively high. A one-bedroom condo in downtown will cost you about C$300,000 and can rent for around $1200 - $1500 per month, which should cover most of your expenses. With the 2010 Olympics coming, there is still plenty of growth left in the market. You can look for property on If you need a good realtor there, email me - the realtor my husband and I used when we purchased our condos there, is outstanding.
Answered by Bettina C - Mon Apr 16 10:36:39 2007

how to avoid capital gain tax while selling a land and buying house?
Q. My wife has a land in Orissa. We are planning to sell that land and purchase an apartment in Karnataka. The apartment price is more than the proceedings from the sale of land. Hence I am planning to take loan for the additional amount. My wife is unemployed. How we can avoid paying Capital Gain Tax and how I can get the tax exemption on home loan?
Asked by DevD - Sun Mar 15 00:01:56 2009 - - 5 Answers - 0 Comments

A. Mr. HMT answer is my answer. Land means agricultural land ??. In case if it is a agricultural land then there is not tax on it. Agricultural land is exempt from capital gains. The conditions are given below. Read it in the website.
Answered by N J Reddy - Sun Mar 15 04:54:42 2009

How to record capital of a business when it came from a loan?
Q. Instead of recognizing it as debit Cash and credit capital, how to recognize the loan?
Asked by Karen C - Sun Jul 22 03:53:04 2007 - - 2 Answers - 0 Comments

A. The recording is simple: You debit the liability account and credit the capital account. This may or may not be legitimate. For example, let's say a shareholder has loaned his corporation money, which is recorded as a liability. Later the shareholder and the company agree that instead of repaying the loan, the company will issue additional stock to the shareholder. This would be a legitimate transaction in which capital is increased in exchange for a liability. This arrangement could take place between other lenders who are willing to accept stock in exchange for their loan.
Answered by Serge M - Sun Jul 22 10:23:25 2007

Specifically, is using capital letters at the start of sentences part of grammar?
Q. I know grammar includes syntex and morphology. Obviously a variety of things make up a good sentence (grammar, punctuation etc.). Does using capital letters at the start of sentences come directly under the use of grammar, or another term? Hope this makes sense.
Asked by iBac - Sat Mar 29 17:19:23 2008 - - 5 Answers - 0 Comments

A. It's part of what's called "mechanics." It makes text easier to read.
Answered by anna - Sat Mar 29 17:26:09 2008