Question

Equity financing is provided by ____ while debt financing is provided by ____.

Answer 1

Equity financing is provided by OWNER

while debt financing is provided by CREDITOR

In equity financing, the company get some financial boost from its owner (or the shareholders) .In return , the company will distribute some part of its profit to the owners

In debt financing, the company get some financial boost from someone outside the company. In this case, the company is not required to distribute its earning and it just has to pay back the debted amount plus interest