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Why is it risky to finance a business through borrowing than equity
Kwame,
check out this example summarizing quite well the difference.
http://www.dynamic-equity.com/vcmag03.htm
From the top of my head I would say that (usually) cash is more volatile then equity and therefore your risk of deterioration is higher.
regards E.
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Managing a Business
Answers by Expert:
Ernesto Gomes
Expertise
I can answer questions to Corporate Governance, General Management, Budgeting, Human Resource, People Management, Sales, Competition, Change & Transformation, Strategy and other. Specifics in Accounting and/or Legal are not my strength.
Experience
I'm an experienced Business Manager and was a GM of a unit within a large IT Company. Leading over 250 Employees and multy million business. International Roles and Responsibilities. Worked and lead in Service Delivery, Sales, Portfolio Management and General Business.
Education/Credentials
Project Management, 12 years of work experience
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