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:

Cross-Cultural Study

Research that compares cultural practices, beliefs, or phenomena across different societies to understand their variations and commonalities.

Altruism

A selfless concern for the well-being of others, often manifesting as unselfish acts or behaviors.

Least Altruistic

Describes individuals or actions that show the smallest degree of concern for the welfare of others, often prioritizing self-interest.

Individualist Cultures

Individualist cultures prioritize the rights and importance of the individual over the collective, emphasizing personal freedom, self-expression, and independence.