Which is an example of equity financing?

2 answers:

5 0

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.

NNADVOKAT [17]2 years ago

4 0

The owner of the company ABC might need to raise a capital to fund a business expansion this is bc equity financing involves selling a portion of a company's equity in return for capital .

You might be interested in

The rate constant in an elementary reaction's rate equation can be modeled by the Arrhenius equation: . a. The coefficient A is

aleksley [76]

For a first-order reaction, the unit of frequency factor (A) is s⁻¹.

<h3>What is the Arrhenius equation?</h3>

The Arrhenius equation can be used to calculate the rate constant at a given temperature for a first-order reaction. Mathematically the Arrhenius equation is given by:

$Log (\frac{k_2}{k_1} )=\frac{E_a}{2.303R} [\frac{1}{T_1} -\frac{1}{T_2}]$