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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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