Meaning Equity financing and debt financing and ten examples each
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Answer:
Debt financing means borrowing money in order to acquire an asset. Financing with debt is referred to as financial leverage. Using debt financing allows the existing stockholders to maintain their percentage of ownership, since no new stock is being issued. However, the additional debt adds risk and may result in higher interest rates for future loans.
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if you're a young entrepreneur who owns your own business or wants to launch one, you have two basic ways to raise money: with debt and with equity. Debt financing means borrowing money. Equity financing means selling a piece of the company. One advantage to equity financing is that you don't have to go into debt. The equity investor becomes an owner just like you rather, than a creditor. If the business fails, he loses his investment and that's the end of it. Of course, if the business is a success, you don't get all the goodies for yourself. The equity investor gets a share, too.
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