You will need to write a paper of 700 words to 1050-words in which you describe the roles.
In certain situations, I’d prefer to borrow money instead of using equity financing if I was establishing my business. If the company needs capital fast and has a plan for its use efficiently and effectively, taking out debt might be the right way to go. Debt financing could be attractive if there are predictable cash flows to support the repayment of any loan taken out. Additionally, borrowing can offer tax benefits because interest payments may be deducted from one’s income taxes. Dividends are not.
There are situations when equity financing is preferable to debt. Equity financing can be a better option than debt if the business has a short-term need or lacks access to outside expertise/networks. In this instance, issuing shares for investment in return for capital may provide those benefits. Consider your individual preferences and personal preference when making a decision. An individual may choose to issue stock rather than take on high-risk borrowing. While each person’s situation will determine whether they choose equity or debt, both have their potential rewards and risks.