What does "true" signify in the context of equity financing?

In equity financing, "true" signifies giving up some level of control over business decisions. When a company seeks to raise capital through equity financing, it typically issues shares to investors. In return for their investment, these shareholders often gain voting rights and influence over key business decisions, which can include choosing board members or approving major business strategies. This transfer of ownership comes with the trade-off that the original owners or founders may not retain full control over the direction of the company.

The other choices do address aspects of equity financing but do not accurately define what "true" represents in this context. Gaining additional investment without losing ownership would be more relevant to debt financing rather than equity, where ownership is shared. Sharing profits with multiple stakeholders is a consequence of having investors but does not specifically relate to the control aspect. Determining business growth unrestricted by investor relations reflects an ideal scenario that doesn't align with the realities of having equity investors, who naturally want to be involved in or informed about significant growth strategies.