An advantage of raising money by borrowing versus issuing shares is that it does not dilute ownership.

Question

Quizplus · Accepted Answer

When a company borrows money, it is obligated to repay the loan plus interest, but it does not result in a decrease in ownership or control of the company. On the other hand, issuing shares can dilute ownership as more shareholders would have rights and claims on the company's profits and decision-making.

An Advantage of Raising Money by Borrowing Versus Issuing Shares