How is financing with equity different from financing with debt?

What will be an ideal response?


1) Financing with debt - The entrepreneur can borrow money from an investor and promise to pay it back over a set period of time and at a set rate of interest. Corporations sell debt in the form of bonds. Similarly, an owner of a small business can borrow money to finance the business.
2) Financing with equity - The entrepreneur trades a percentage of ownership in the business in exchange for money invested into the business. The investor receives a percentage of future profits from the business based upon the percentage of ownership. Corporations sell equity in the form of stock. An entrepreneur cannot sell stock unless the business is incorporated, but he or she can sell equity. The entrepreneur can offer ownership and a share of future profits in exchange for financing.

Business

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Why is it important for the copy testing process to be versatile?

What will be an ideal response?

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Which component of ethical behavior can mean that successful implementation has developed competence?

A. component 1: moral sensitivity B. component 2: moral judgment C. component 3: moral motivation D. component 4: moral character

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Flash Foods is the name of a chain of convenience stores with self-service gas pumps. What do you know about the convenience stores?

A. They carry a wide assortment of products B. They carry a limited line of high-turnover goods C. They compete on the basis of low price D. They carry a limited but deep assortment of products E. They carry the freshest of produce

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A correlation coefficient comparing exercise and body mass is -.67. What does this say about the relationship between exercise and weight?

What will be an ideal response?

Business