Why might a company prefer debt over equity for financing? Option 1: Debt financing does not affect earnings per share. Option 2: Debt financing is safe Option 3: No obligation of payment in case of liquidation Option 4: Retain Control over business

The answer is 'Retain Control over business'. View full solution:

CUET Business Studies - Why might a company prefer debt over equity for financing? | PYQs + Solutions

CUET Business Studies 2026 29th May Shift 1

Business Studies

Medium

Debt financing does not affect earnings per share.

Debt financing is safe

No obligation of payment in case of liquidation

Retain Control over business

✅ Correct Option: 4