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HIsPoCratiC HIsPoCratiC
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7 years ago
What is the difference between debt financing and equity financing?
Textbook 
Business Essentials, Canadian Edition

Business Essentials, Canadian Edition


Edition: 8th
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#1
7 years ago
Equity financing means selling ownership in the company (common stock) as a means of getting the long-term funds it needs to buy things like land, buildings, and equipment. This money does not have to be paid back (although investors may expect dividends to be paid on a regular basis). By contrast, debt financing (long-term loans and the sale of bonds) means borrowing money to use in the company. This borrowed money must be paid back at some point.
HIsPoCratiC Author
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#2
7 years ago
Never thought of that, ty!
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