The Primary Disadvantage of Equity Capital Is That the Entrepreneur

question 64

Multiple Choice

The primary disadvantage of equity capital is that the entrepreneur ________.

• A)must repay it at some point with interest
• B)must give up some (perhaps most)of the ownership in the business to outsiders
• C)experiences the disadvantage of the risk/return tradeoff in the form of higher interest rates
• D)B and C above

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Definitions:

Online Surveys

Tools used for conducting surveys over the internet to collect data or opinions from a wide range of participants.

Room Temperature

The ambient temperature of an indoor environment, typically considered comfortable for humans, around 20-22°C (68-72°F).

Task Performance

Refers to the effectiveness and efficiency with which an individual is able to accomplish a specific job or task.

External Validity

The extent to which research findings can be generalized or applied to settings, populations, or time periods beyond the original study.