Shareholder Debt

Risk Capital
Risk capital refers to the funds invested in projects with a high level of uncertainty, such as new ventures or expanding businesses, where substantial risk exists but the potential for high returns is present.
Shareholder Debt
Shareholder debt refers to the financial obligations incurred by a company to its shareholders, where interest paid on this debt is tax-deductible. It is commonly used in highly leveraged funding arrangements typically associated with private equity firms.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.