equity loan payments – home

November 7, 2009

Which of the following is an advantage of equity financing over debt financing?

Drew asked:


Which of the following is an advantage of equity financing over debt financing?

A. The original partners can maintain total control of the company.
B. Equity financing provides necessary capital more quickly than a loan.
C. It’s possible to raise more money than a loan can usually provide.
D. Debt financing is reserved for large corporations with a history of high profits.

Miguel

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2 Comments »

  1. Florence

    A-False
    B-False
    C-True
    D-False

    “C” is right one.

    Comment by Jurijs Fadejevs — November 10, 2009 @ 3:13 pm

  2. Elmer

    C

    A becomes very difficult, B is usually not true, and D is not an advantage. C is also expressed as “it’s possible” so its definately true that it is at least possible.

    Comment by John M — November 11, 2009 @ 11:23 am

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