Which of the following sources is non-dilutive and does not require repayment?

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Multiple Choice

Which of the following sources is non-dilutive and does not require repayment?

The main idea is non-dilutive funding that also doesn’t require repayment. Grants fit this both ways: they come from government agencies, foundations, or corporations to support specific activities, and they do not give up ownership in your company and you don’t have to repay the money. That means you keep full control and avoid future debt service. In contrast, angel investment involves giving up equity (ownership) or promises of future returns, and a bank loan is debt you must repay with interest. Crowdfunding can be non-dilutive and non-repayable if it’s donation- or rewards-based, but it can also involve equity in some cases, so it isn’t as consistently non-dilutive as a grant.

The main idea is non-dilutive funding that also doesn’t require repayment. Grants fit this both ways: they come from government agencies, foundations, or corporations to support specific activities, and they do not give up ownership in your company and you don’t have to repay the money. That means you keep full control and avoid future debt service. In contrast, angel investment involves giving up equity (ownership) or promises of future returns, and a bank loan is debt you must repay with interest. Crowdfunding can be non-dilutive and non-repayable if it’s donation- or rewards-based, but it can also involve equity in some cases, so it isn’t as consistently non-dilutive as a grant.

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