Debate the advantages and drawbacks of using debt financing compared to equity financing to meet the...

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Debate the advantages and drawbacks of using debt financingcompared to equity financing to meet the financial needs of astart-up. Choose at least two examples of each type to compare andcontrast.

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For expanding the businesses it is quite important for the businessmen to look for the various financial resources option There are a number of financial resources which can be utilized by the business owners which can be classified into two main categories which are debt and equity Debt mainly incorporates the borrowing of money which has to be repaid along with some extent of interest while equity can be seen as raising the financial resources by selling the interest in the business organization Example of Debt The traditional form of debts such as borrowing from the banks and other financial institutions See Answer

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