What are the risks associated with business funding?
An example of an AI chatbot conversation about the risks of business funding.
What are the risks associated with business funding?
There are several risks, including debt accumulation, equity dilution, and potential loss of control.
Can you explain debt accumulation in more detail?
Debt accumulation occurs when a business takes on loans that must be repaid with interest, which can strain cash flow.
What about equity dilution? How does that work?
Equity dilution happens when a business raises funds by selling shares, reducing the ownership percentage of existing shareholders.
Are there any ways to mitigate these risks?
Yes, businesses can mitigate risks by conducting thorough research, creating a solid business plan, and seeking advice from financial experts.
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