What factors should businesses consider while determining sources of funding?

[Brenda]

Businesses should consider factors like interest rates, repayment terms, and control implications when determining funding sources. For instance, bank loans offer fixed interest rates but require regular repayments. Venture capital provides significant funds but may dilute ownership, as seen with startups like Uber. Grants and crowdfunding, such as Kickstarter campaigns, offer non-repayable funds but might be competitive and require substantial marketing effort. Each funding source impacts financial stability and operational control differently.