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Owner's funds can limit a company's growth potential, as they may not provide enough capital for large investments or expansion compared to debt financing. Additionally, relying solely on owner's funds can increase financial risk if the business faces downturns, as personal assets may be at stake. Furthermore, using only owner’s funds can lead to slower scalability and less flexibility in responding to market opportunities. Lastly, it may also reduce the ability to leverage financial strategies that could enhance overall returns.

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1mo ago

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