John has a great idea to setup a pie and pastie factory. He needs $200,000 to buy the equipment and to lease suitable premises for a year. He is not sure whether he should setup a company and issue 200,000 shares to his friends, or else try to borrow $200,000 from a bank to raise those funds. Explain to him the advantages and disadvantages of both alternatives. A . B E SS PA U S X2 x2 E