Debt financing as opposed to equity financing allows owners to retain voting control of the company.

Question

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Debt financing involves borrowing money from lenders who do not become owners of the company. This means that the owners can retain their voting control of the company while using the borrowed funds to finance their business operations. On the other hand, equity financing involves selling ownership stakes in the company to investors who then become part owners and have a say in the company's decision-making processes.

Debt Financing as Opposed to Equity Financing Allows Owners to Retain