Question

Which type of financing refers to giving up some control of the business to raise funds?

a.owner’s equity
b.equity financing
c.debt financing
d.risk financing

Answer 1

B) Equity Financing because investor gets nothing at the same time giving up equity is giving up control

Answer 2

The correct answer is letter "B": equity financing.

Step-by-step explanation:

Equity financing involves giving up part of the company because it will have to be shared with the partners of the organization who are usually the investors. Though, without the investors, the company operations are unlikely to continue. This type of financing is used by entities that face hard financial situations or startups that begin operations.