Which form of financing would give you the most control with less flexibility in cash flows?*

Question

Quizplus · Accepted Answer

Debt financing involves borrowing money from a lender or creditor, which gives the borrower control over the business operations. However, there is less flexibility in cash flows because the borrower has to make regular payments to the lender, regardless of the business's performance. This contrasts with equity financing or money from a venture capitalist, where there is more flexibility in cash flows but less control for the business owner. An IPO (initial public offering) is a type of equity financing that allows a company to raise capital by selling shares of stock to the public.

Which Form of Financing Would Give You the Most Control