3 years ago

Describe the difference between debt capital and equity capital.

Business

1 answer:

shusha [124]3 years ago

6 0

Answer:

Explanation:

Companies borrow debt capital in the form of short- and long-term loans and repay them with interest. Equity capital, which does not require repayment, is raised by issuing common and preferred stock, and through retained earnings. Most business owners prefer debt capital because it doesn't dilute ownership

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