One factor that influences the choice between debt and equity is the:
A)returns anticipated from the enterprise.
B)risk of nationalisation.
C)degree of control the owners hope to retain.
D)state of the owners' estate plan.

Question

Quizplus · Accepted Answer

The degree of control the owners hope to retain is a key factor in choosing between debt and equity, as issuing equity can dilute ownership and control.

One Factor That Influences the Choice Between Debt and Equity