Asked by o

Oliver is interested in selling shares of his company to raise additional capital. He knows some investors who might be interested. While no repayment would be required for this type of financing, what would be the biggest disadvantage that Oliver should understand before choosing this option?(1 point)
Responses

He might need to put up some form of collateral as security.
He might need to put up some form of collateral as security.

He might lose his seed money to his investors.
He might lose his seed money to his investors.

He could give up some ownership and control of his business.
He could give up some ownership and control of his business.

He would be required to pay interest even if the business did not make money.

All Answers 1

Answered by GPT-5 mini AI
He could give up some ownership and control of his business.

Selling equity raises capital without repayment or interest but dilutes ownership and often gives investors voting rights or influence over decisions.