Commerce Questions and Answers

In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it.

A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital.

A chamber of commerce (or board of trade) is a form of business network, for example, a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community.

Multilateral trade agreements are commerce treaties between three or more nations. The agreements reduce tariffs and make it easier for businesses to import and export. Since they are among many countries, they are difficult to negotiate. That same broad scope makes them more robust than other types of trade agreements once all parties sign.

The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders.

Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock. Paid-up capital is created when a company sells its shares on the primary market directly to investors.

Unpaid share capital is where none of the monies due for an allotment of shareswhich have been issued has been paid. It is quite common in smaller companies for the share capital to be unpaid and remain due to the company indefinitely.

 "called up capital "The value of the issued shares that have remained fully or partially unpaid, and whose holders have now been called upon to pay all the unpaid balance.

An overdraft is an extension of credit from a lending institution when an account reaches zero. Overdrafts come with interest and additional fees and should only be used sparingly. An overdraft will allow you to borrow money through your current account. Usually there’s a charge. You might request one from your bank or your account might automatically offer you an overdraft

Loan (such as an overdraft) with or without a fixed maturity date, can be recalled anytime (often on a 24-hour notice) by the lender and must be paid in full on the date of demand. Also, the borrower can pay off a demand loan at any time without incurring early-payment penalties. Also called call loan or money at call.