Question
Equity financing and Debt financing
Answer :
Word Count : 166
| Basis of Difference | Equity Financing | Debt Financing |
|---|---|---|
| Meaning | Raising funds by selling ownership shares of the business to investors. | Raising funds by borrowing money which must be repaid with interest. |
| Control | Dilution of control, as shareholders may influence business decisions. | No dilution of control; lenders have no say in management. |
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