Which statement is true concerning equity financing?

Equity financing refers to the process of raising capital through the sale of shares in a company. When a business owner opts for equity financing, they bring in investors in exchange for ownership stakes. This inherently leads to shared control, as the investors typically have a say in significant company decisions proportional to their investment.

Investors often seek a degree of influence or authority over the business's operations and strategic direction, which means that the original business owners cannot retain complete control. By agreeing to give up a portion of ownership to attract funding, business owners are essentially making a trade-off between access to capital and the degree of control they maintain over their business.

The other options do not accurately reflect the realities of equity financing. While business owners may retain some level of ownership, they cannot expect to maintain full control when others are vested in the company's success. Additionally, equity financing does involve financial risks, including the dilution of ownership and potential conflicts with investors. It's also a common practice alongside bootstrapping, not necessarily less common. Thus, understanding the implications of shared control is crucial when considering equity financing as a viable option for raising capital.