Describe the difference between debt capital and equity...

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Review Questions 1. Describe the difference between debt capital and equity capital. Debt capital is something a business takes out in a loan which it’s also called growth capital. Equity capital is funds paid into investors for preferred products. 2. What primary risk are business owners taking when selling shares of their companies? Sharing percentages and losing their position where there was only one business leader 3. What do smart investors do before making an investment? 4. What is the primary goal of the purchasing process? 5. Explain why identifying needs is an important part of the purchasing process. Critical Thinking Questions 1. If you were to open a small business, would you raise debt capital or equity capital to fund the operation? Explain.

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