malvarez2022 malvarez2022

02-01-2021
Social Studies

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joe needs external financing for his company he analyzed the financial statements of various companies and arrived at the conclusion that equity finance is a better option which sentences in the given passage supports his view

joe needs external financing for his company he analyzed the financial statements of various companies and arrived at the conclusion that equity finance is a be class=

Respuesta :

07-01-2021

Answer:

The investors in equity can only realize a profit from the investment if the business is doing well.

Explanation:

The sentence that "The investors in equity can only realize a profit from the investment if the business is doing well, " support Joe's view because he can rest assured that the equity investor will not disturb him about payment except when he's making a profit from the business.

Hence, should the business fail to start yielding profits right away, he would not care about paying the investors profits

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