answersLogoWhite

0

Debt capital is money borrowed by a business that needs to be repaid with interest, while equity capital is money raised by selling shares of ownership in the company. Businesses decide which type of capital to use based on factors like cost, risk, control, and growth objectives. They may choose debt capital for lower cost and maintaining control, or equity capital for shared risk and potential for growth.

User Avatar

AnswerBot

5mo ago

What else can I help you with?

Related Questions

What are the difference between interest free and conventional banking system?

difference between interest and interest free financing


What is the difference between a 'market requirements' and an 'operations resource' view of operations strategy?

Ask Dr Alex bananas and he will answer you


The Difference Between Operations and Variable?

you are wasting your time.


Is there a difference in equipment between ranks?

On operations basically no.


Difference between on balance sheet financing and off balance sheet financing?

In off-balance sheet financing assets are not shown in balance sheet while in balance sheet financing fixed assets shown in balance sheet.


What is the difference between interest only financing and conventional financing?

The difference between interest only financing and conventional financing is that you are able to make money without any investment on an interest only account only by depositing a maximum amount in an account which you leave for a set period of time where interest will accumulate. Conventional banking is used for more day to day banking purposes.


What is the difference between banking and financing?

A Banker who borrows money and lends money for the people is called as Banking.Whereas financing is the lending of money for the people with an interest for the use of people.


How to graph the difference between online and brick and mortar business?

The answer depends on what aspect you wish to compare:number of businesses,turnover of businesses,age of businesses,profitability of businesses,nationality of businesses,and so on.


What is the major difference between arithmetic and logical operations?

Arithmetic operations are addition,subtraction,multiplication,division.Logical operations are OR,AND NOT,NOR,NAND,XOR,XNOR.


What is the difference between trading business and service business?

Trading businesses and service businesses


Difference between Hrm and operations management?

dont.know.....i also want to now it


What is the difference between Lease financing and debt financing?

Lease financing is like taking a loan to pay for the rental of the product for a fixed term. At the end of the lease term, the product is taken back by the lessor. Debt financing is like taking a loan to pay for an item that will eventually be your own.