What is the difference between debt and equity financing?
Question:
What is the difference between debt and equity financing?
Raising Capital:
Companies must obtain capital by either debt or equity to obtain the necessary funds to start a business. Companies need assets such as equipment or computers to be able to successfully operate their business with the goal of earning a profit.
Answer and Explanation: 1
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View this answerDebt financing is when a company obtains financing but has to repay it at a later date. An example of this is bonds. If an investor purchases bonds...
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Chapter 24 / Lesson 2Understand what debt capital is. Learn debt capital and equity capital definitions and characteristics. See debt and equity capital examples.