Sunday, February 28, 2016

Week 8 Reading Reflection


For this weekly reading, what stood out the most was the difference between debt and equity as methods of financing. Debt is a secured financing of a new venture that involves a payback of the funds plus a fee, which is an interest for the use of money. In other hand, equity involves the sale of some of the ownership interest in the venture in return for an uncured investment in the firm. I have some question does a Debt have more advantages or disadvantages? However,  for this reading I don’t disagree with the author because this is something new and useful for me.

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