Business, 05.11.2020 01:20 Kalle91106
Joe needs external financing for his company. He analyzed the financial statements of various companies and arrived at the conclusion that equity finance is a better option. Which sentences in the given passage supports his view?
Equity V/s Debt
The investors in equity can only realize profit from their investment if the business is doing well. Lenders of a loan are paid a certain amount at regular intervals. The right venture capitalists could bring their experience into the business as they are part owners. Management time is invested in keeping investors informed about the policies of the company. The lenders do not have a claim to equity in the business.
Answers: 1
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