A drawback of raising equity capital from other people is that an entrepreneur must inevitably share control with other investors.

Question

Quizplus · Accepted Answer

When an entrepreneur raises equity capital from other people, they are essentially selling ownership stakes in their company. This means that the investors become shareholders and have a say in how the company is run. As a result, the entrepreneur must share control with the other investors, which can be a drawback depending on the entrepreneur's goals and vision for the company.

A Drawback of Raising Equity Capital from Other People Is