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Five-year-old Esperanza knows that she is not supposed to take anything off the kitchen counter unless her mother gives her permission,but she can't resist the fresh cookies while her mother is out of the room.When mother returns to the kitchen,she looks at the cookies,looks at Esperanza,and asks if Esperanza took a cookie.Aware that her mother will not be happy if she says yes,Esperanza says no,she didn't take a cookie.Esperanza's ability to understand that her mother thinks about things differently than she does is called the theory of
Equity Financing
The method of raising capital through the sale of shares in a company, thereby granting shareholders ownership interests.
Five C's of Credit
are criteria that lenders use to evaluate the creditworthiness of a borrower: character, capacity, capital, collateral, and conditions.
Debt Financing
A method of raising capital through the borrowing of money, typically involving the issuance of bonds or taking out loans.
Equity Financing
The act of raising capital through the sale of shares in a company, providing investors with part ownership.
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