The chief advantage of debt financing over financing through raising equity capital is that the former does not dilute the current owner's share of the business.

Question

Quizplus · Accepted Answer

Debt financing involves borrowing money that needs to be repaid with interest, while equity financing involves giving up a portion of ownership in the business in exchange for funds. Since debt financing does not involve giving up ownership, it does not dilute the current owner's share of the business.

The Chief Advantage of Debt Financing Over Financing Through Raising