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Unformatted text preview: Advantages : 1. Business is not obligated to _______________ (even in cases of bankruptcy) 2. Involvement of _________________ can assist in managing the firm & may increase credibility of a new venture —___________ added 3. More cash available to the new venture because ___________________________ 4. _________________ do not have to be pledged as collateral Disadvantages : 1. Dilution of _________________ 2. Less (or loss of) control due to _________________ 3. Loss of future profits—______________ paid to equity investors 4. ____________________ may not be tax deductible (e.g. C-Corporations) Sources: http://biztaxlaw.about.com/od/financingyourbusiness/a/debtvsequity.htm http://smallbusiness.findlaw.com/banking_financing/source/business_events/be1_5debtvsequity http://www.bookrags.com/research/debt-vs-equity-financing-eom/...
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This note was uploaded on 10/17/2011 for the course MNGT 305 taught by Professor Chadwick during the Summer '11 term at Nicholls State.
- Summer '11