Leela wants to raise money for her business. However, she does not want to give its ownership shares to outsiders. Which of the following ways of financing should Leela choose for her business?

Question

Quizplus · Accepted Answer

Debt financing involves borrowing money from a lender, such as a bank or a financial institution, and usually involves paying back the principal amount plus interest over a set period of time. Unlike angel investors or venture capitalists, there is no ownership of the company granted to the lender. Therefore, it would be the best choice for someone who wants to raise money without giving away ownership shares.

Leela Wants to Raise Money for Her Business