Kern's Kernel Corporation needs to raise $$300,000$ of additional capital to purchase a grain silo. The corporation could borrow

$$300,000$ from a local bank or it could issue additional shares of common stock to a handful of additional investors in exchange for

$$300,000.$

Jen, the company's CFO, is considering relative advantages and disadvantages of both options. The corporation's existing

shareholders are unwilling to sacrifice ownership and control of the enterprise. Therefore, Jen is strongly considering debt financing

because a

will not

shares or have voting rights whereas equity investors will have both

and

privileges.

Prompts

Answers

$(1)$

lender

ownership