Founders Lose Control When Exiting Equity

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Question:

Exiting equity through financing denies founders of what advantage? Question 14Answer a. Interest payments b. Profit maximization c. Market position d. Ownership and control of the entity

Answer:

Exiting equity through financing denies founders of:

d. Ownership and control of the entity

When founders seek financing through equity, they often give up a portion of their ownership, which can lead to a loss of control over the company.