Which of the following is an advantage of equity financing over debt
financing?
A. Equity financing provides necessary capital more quickly than a
loan.
B. Debt financing is reserved for large corporations with a history of
high profits.
C. It's possible to raise more money than a loan can usually provide.
D. The original partners can maintain total control of the company.

Question

01-07-2022
Business

contestada

Which of the following is an advantage of equity financing over debt
financing?
A. Equity financing provides necessary capital more quickly than a
loan.
B. Debt financing is reserved for large corporations with a history of
high profits.
C. It's possible to raise more money than a loan can usually provide.
D. The original partners can maintain total control of the company.

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Parrain Parrain · Answer 1 · 2022-07-18T17:51:11+02:00

one of the main advantage of equity financing over debt financing is that C. It's possible to raise more money than a loan can usually provide.

why do some companies opt for equity over debt?

when a company tries to raise debt capital, there is a limit to how much they can raise in order not to fail to pay it back.

equity financing on the other hand, can allow a company to raise much more money as there are less consequences during default.

find out more on equity financing at https://brainly.com/question/24322461.

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