Kevin's company needs to obtain funds in order to keep the business going;however,he does not want stockholders influencing the direction of his company.What type of financing should Kevin acquire?
A)Angel investment
B)Venture capital
C)Debt capital
D)Equity capital

Question

Quizplus · Accepted Answer

Debt capital would allow Kevin to obtain funds without giving up ownership or control of his company. With debt financing, he would be required to pay back the loan with interest, but would not have to give up equity in the company or deal with the influence of stockholders. Angel investment and venture capital both involve giving up some level of ownership and control to investors, while equity capital involves issuing stocks and giving up ownership to shareholders.

Kevin's Company Needs to Obtain Funds in Order to Keep