Equity Finance
All business owners need money—known as financing—to establish a firm, to operate daily, and to grow in whatever ways the owner deems best.
Two of the most common forms of financing are equity and debt. The value of equity financing is that the money people invest in your business does not come with a promise that it be repaid. Debt financing, in contrast, requires repayment with some type of compensating interest, as negotiated. This chapter provides examples of equity financing, followed by examples of debt financing in the next chapter.
What Is a Business?
An organization
comprised of people
who produce goods and services
to sell
to earn a profit
distributed to stakeholders
Equity finance is a form of financing in ...
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