One factor that influences the choice between debt and equity is the
A)returns anticipated from the enterprise.
B)risk of nationalization.
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 may dilute ownership and control, while debt does not.

One Factor That Influences the Choice Between Debt and Equity