Unlike equity financing, debt financing does not require an entrepreneur to dilute her ownership interest in the company.

Name: Unlike equity financing, debt financing does not require an entrepreneur to dilute her ownership interest in the company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Debt financing involves borrowing money that must be repaid with interest, but does not involve selling ownership in the company. This allows the entrepreneur to maintain full ownership of the company.

Unlike Equity Financing, Debt Financing Does Not Require an Entrepreneur