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Learning Journal Unit 7 - Bus 1102 Basic Accounting.docx -...

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Learning Journal Unit 7BUS 1102 - Basic AccountingDebt and equity financing have the same purpose of securing funding (working capital) that'sused to purchase necessary operating assets for expanding the business (Franklin et al., 2020).Advantages of equity financing are (Queensland Government) the business owner does not haveto carry the responsibility of paying back a debt, investors do not need repayments. They investin the business by putting additional funds to build or expand the business. Investors do not onlybring in funding into the business as co-owners. They contribute in other ways, too, like bringingin their experience, management expertise, or technical; bringing in new contacts or networks,which makes the business viable. When additional funding is needed to expand the business,investors can provide without securing a bank loan.Looking at the advantages of debt financing, when a business owner gets the funding, theyremain the owner/s of the business; they do not have to have investors. One gets to keep profits

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Term
Fall
Professor
Peggy January
Tags
Finance, Debt, business owner

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