Difference Between Equity and Royalty

Key Difference – Equity vs Royalty

Resources are vital for all organizations and there are different ways of incorporating them into the business operations. Some businesses have direct ownership of resources that are used to produce goods and services while some acquire assets from owners to use for commercial purposes. The key difference between equity and royalty is that whileequity is the amount of capital continued by the shareholders in the company, royalty is a payment made to the owner to reimburse for the use of a property.

内容
1.Overview and Key Difference
2.什么是公平
3.What is Royalty
4.Side by Side Comparison – Equity vs Royalty
5.概括

什么是公平?

股权代表公司的所有权，因为这是股东拥有的。权益的组成部分如下。

Common Stock

This is owned by principal owners of the company and these are allequity shares.

Preference Shares

Preference shares are also equity shares; however, they may have fixed or floating dividend rates.

分享保费

股票保费是收到的额外资金，超过普通股的标准价值。

Retained Earnings

这些是累积的净收益，而不是以股息的形式支付给股东，并保留在公司中以进行未来的投资。

Returns for Equity

股息- 从利润中支付给股东的资金数量

Capital Gains– Appreciation in share price due to the higher demand for company’s shares

Equity shareholders receive a number of rights depending on the type of shares held. For instance, common shares have voting rights and preference shares are usually entitled to guarantee dividends. In the case of liquidation, the equity shareholders get paid the remaining profits up to the percentage of their ownership.

What is Royalty?

特许权使用费是向有形或无形资产的所有者（例如财产，专利，版权，特许经营或自然资源）支付的付款（特许权使用费）。为了补偿所有者使用资产的使用。使用特许权使用费是具有法律约束力的合同。专利，版权和特许经营是支付特许权使用费的共同安排。

Patent

专利是授予公司专门制造产品的权利。为了获得专利，该公司应大力投资于研发，时间和其他资源，并引入独特的新产品。产品的卖方应通过将产品出售给最终客户来支付公司的一部分

Copyright

This is a form of intellectual property, applicable to certain forms of creative work. Copyright holders obtain the exclusive right to license, make copies of printed, audio or video versions of the intellectual property in concern.

特许经营

A franchise agreement is a type of license that a party (referred to as franchisee) acquires from another business (referred to as the franchiser) in order to obtain access to franchiser’s knowhow, processes and trademarks. In return for this right to use these benefits, annul fees should be paid by the franchisee from profits made

Royalties are usually made as a percentage of the revenue obtained using owner’s assets. If the product is extremely technologically advanced, the royalty rate is generally very high. For instance, technology giants such as Apple and Microsoft charges high Royalty fees on their products and operating systems. Further, fast food franchises such as MacDonald’s, Pizza Hut and KFC are very popular in the world.

例如，到2017年，麦克唐纳（MacDonald）的特许经营者收取总收入的12％，作为特许权使用费。

Royalty is a guaranteed stream of income for the company, and even at times that the company is experiencing fewer profits, there will be no change in the royalty income. However obtaining a status to charge royalties is extremely difficult and cannot be done by many companies since the need of a unique product or service.

What is the difference between Equity and Royalty?

Equity vs Royalty
Equity is the amount of capital owned by the shareholders.	Royalty is a payment made to the owner of an asset to compensate for the use of the asset.
所有权
股权授予公司的所有权。	特许权使用费是使用资产的付款，该资产没有所有权。
Types
Common stock, preference stock and retained earnings are main types of Equity	Patents, copyrights and franchises are widely used royalty agreements.

概括– Equity vs Royalty

权益和特许权使用费之间的主要区别与关注的所有权标准有关。股权是公司中所有权的代表，而特许权使用费并未赋予拥有知识或商标之类的资产的权利，它只是赋予使用资产以换取定期付款的权利。此外，由于版税源于发明独特产品的能力，因此，皇室并不是所有组织实践的常见情况。

Reference:
1. “Balance Sheet – Owner’s Equity | AccountingCoach.” AccountingCoach.com. N.p., n.d. Web. 24 Feb. 2017.
2. “Royalty.” Investopedia. N.p., 12 June 2015. Web. 24 Feb. 2017.
3. “Types of equity – Questions & Answers.” AccountingTools. N.p., n.d. Web. 26 Feb. 2017.
4.“麦当劳的特许经营。”特许经营的帮助。N.P.，N.D。网络。2017年2月24日。

Image Courtesy:
1.“ 1844848”（公共领域）通过Pixabay