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Finance for Nonfinancial Managers, Second Edition (Briefcase Books Series), 2nd Edition by Gene Siciliano

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Financing the Business: Understanding the Debt versus Equity Options

Throughout this book we’ve referred to the investment in a business that provides the cash to begin operations. We’ve also looked at a balance sheet that shows debt owed by the business—money borrowed for some corporate purpose. But we’ve yet to talk about how that money is raised and how the debt or equity gets onto the books.

  While there are many books on this subject, we only need to preview this important area. In these final chapters, we look at both debt and equity financing: what they are, how they work, and why an owner or CEO might choose one or the other or both to ...

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