The primary advantage of equity capital is ________.
A)its lower interest rate
B)that it is readily available to a large number of entrepreneurs from a variety of lenders
C)that it does not have to be repaid like a loan does
D)that it does not appear on a company's balance sheet

Question

Quizplus · Accepted Answer

The primary advantage of equity capital is that it does not have to be repaid like a loan does. This means that there is no interest rate attached to it and it does not have to be reflected as a liability on the company's balance sheet. However, equity capital may not be readily available to all entrepreneurs, and the process of raising it can be more complex and time-consuming than obtaining a loan. Additionally, equity investors become part owners of the company and may seek to exert influence over its operations.

The Primary Advantage of Equity Capital Is ________