Explain the difference between equity and debt capital. What advantages and disadvantages characterize each?

What will be an ideal response?

? Equity Financing
Represents the personal investment of the owner(s) of the business. The primary advantage of this type of financing is that it does not have to be repaid with interest. The primary disadvantage is that an owner has to share ownership and may lose a great deal of control of the venture, especially if equity capital is being raised in early start-up stages.
? Debt Financing
Involves the funds that the small business owner borrows and must repay with interest. Lenders of debt capital are more numerous than investors of equity capital however, loans may be more difficult to obtain. The primary advantage of debt capital is that it does not normally remove ownership from the small business owner. Its primary disadvantages are that the debt must be carried as a liability on the balance sheet, and must be repaid with very costly interest payments at some point in the future.