What is the difference between debt financing and equity financing?
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What is the difference between debt financing and equity financing?
Debt financing involves borrowing funds that must be repaid with interest, whereas equity financing involves raising capital by selling shares of the company, giving investors an ownership stake.
In essence, with debt financing, the company retains full control but incurs a liability, while equity financing shares ownership and profits but may dilute control over business decisions. If you have more questions on this topic or need further clarification, feel free to ask!