Financing with equity allows a company to retain profits and cash rather than to make interest payments and to pay back debt.

Question

Quizplus · Accepted Answer

Financing with equity means selling ownership in the company to investors. This doesn't require making interest payments or paying back debt, but instead allows the company to use its profits and cash for reinvestment, growth, or other business activities.

Financing with Equity Allows a Company to Retain Profits and Cash