asked 173k views
4 votes
What is a reason for corporations to use debt in capital financing?

asked
User Asotos
by
7.9k points

1 Answer

2 votes

Preserve company ownership

The main reason that companies choose to finance through debt rather than equity is to preserve company ownership. In equity financing, such as selling common and preferred shares, the investor retains an equity position in the business.
answered
User Dmitry Dedov
by
8.2k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories