Question
Equity financing and Debt financing
Answer :
Word Count : 171
| Basis of Difference | Equity Financing | Debt Financing |
|---|---|---|
| Meaning | Raising capital by selling ownership shares of the company to investors. | Raising capital by borrowing funds from lenders with a promise to repay with interest. |
| Repayment | No obligation to repay capital invested; returns are given through dividends. | Fixed repayment of principal and interest ___ _________ ____ _________ _________ _______ _______. ____ _______ _____ _______ ________ ______ _______ ___ _________ ____ _________ ___. _____ _________ ______ ______ ________ _______ ________. __________ ___ ___ ____ ___ _________ ____ _____ _________ ______ _________. _______ _________ _____ _________ _____ ____. _____ ______ ___ __________ _______ _____ ____ _______ _____ ______ ____ ________. ____ __________ ________ _______ ____ _________ ______. ___ _______ _________ __________ _________ __________ _____ _____ ___ _________ ___ _____. _____ _____ _________ _______ _____ _______ ________ ______ _________. ___ _______ __________ ______ _____ _______ __________ _______ _________ _______ _________. ____ ____ ___ _____ ______ ________ _________ _________. _________ _______ _________ ________ _______ ___ _________ ______ ________ ______. ____ __________ __________ ______ __________ ________. ___ ________ ________ ___ _________. _____ _______ __________ _______ ______. IGNOU ACADEMY Your IGNOU journey, made easier.
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