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Securing needed financing is one of the most important functions related to starting a business.Therefore, it is important to understand what sources of financing exist at various stages ofventure development. It is also important to determine what kind of financing provides themost value for the entrepreneur and the new venture. Equity financing is one way entrepreneursuse to access funding.a. What is equity financing? (3 marks)b. State and expain two (2) examples of equity funding. (4 marks)c. State three advantages of equity financing? (3 marks)

Securing needed financing is one of the most important functions related to starting a business.Therefore, it is important to understand what sources of financing exist at various stages ofventure development. It is also important to determine what kind of financing provides themost value for the entrepreneur and the new venture. Equity financing is one way entrepreneursuse to access funding.a. What is equity financing? (3 marks)b. State and expain two (2) examples of equity funding. (4 marks)c. State three advantages of equity financing? (3 marks)

Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter16: Mastering Financial Management
Section16.2C: The Risk–Return Ratio
Problem 1CC
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Securing needed financing is one of the most important functions related to starting a business.
Therefore, it is important to understand what sources of financing exist at various stages of
venture development. It is also important to determine what kind of financing provides the
most value for the entrepreneur and the new venture. Equity financing is one way entrepreneurs
use to access funding.
a. What is equity financing? (3 marks)
b. State and expain two (2) examples of equity funding. (4 marks)
c. State three advantages of equity financing? (3 marks) 

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