Question

Creditors and shareholder

Answer 1

A small business can fund its operations using either debt capital from creditors or equity funding from stockholders. While stockholders own a stake in your company and do not require repayment, creditors have no ownership and must be repaid.

Answer 2

Answer:

A small business can fund its operations using either debt capital from creditors or equity funding from stockholders. While stockholders own a stake in your company and do not require repayment, creditors have no ownership and must be repaid.A shareholder (also known as stockholder) is an individual or institution (including a corporation) that legally owns one or more shares of the share capital of a public or private corporation. Shareholders may be referred to as members of a corporation.

Explanation:

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