Growing companies are best financed entirely with debt financing.

Question

Quizplus · Accepted Answer

Growing companies need a mix of debt and equity financing to manage their financial risk and achieve growth. While debt financing provides borrowed funds that must be repaid with interest, equity financing provides the capital through investments from shareholders in exchange for ownership stake in the company. A balance of both debt and equity financing allows a company to manage its debt load, maintain financial flexibility, and minimize the cost of capital.

Growing Companies Are Best Financed Entirely with Debt Financing