There are two major advantages of getting a loan vs. investment capital:

Question

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The two major advantages of getting a loan vs. investment capital are that no ownership in the firm is surrendered and interest payments are tax deductible. Option D captures both of these advantages. Option A is incorrect because loans do have to be paid back, and it is actually investors who often take a more active interest in their investments. Option B is partly correct in that interest payments are tax deductible, but it is not true that banks are always reliable sources of funding for startups. Option C is incorrect because loans do have to be paid back, so the money is not "free." Option E is partly correct in that lenders may take an active interest in borrowers, but it is not true that banks are always reliable sources of funding for startups.

There Are Two Major Advantages of Getting a Loan Vs