Review the following article and answer the following: Debt Financing or Equity: Which Should you choose?

After reading the article, please answer the following questions:

1. What does James Bartel mean by " Debt cannot be used to fund an idea, nor can it be disproportionate to the collateral"?

2. Tim is the owner of an HVAC company. He determines that he needs two more trucks and equipment to facilitate additional customers. He is thinking about how to finance the purchase but is not sure if he should take advantage of debt or equity financing? Based upon what you read in this article, which form of financing would be appropriate for Tim?

3. Stephanie is a engineer and designs a product that makes it easier to install a gate around a pool. She has created a prototype which has been proven by testing to work as designed. There has been significant fanfare on this revolutionary design. In order to manufacture and sell the product, she needs to seek capital. Based upon the article, shat type of financing would Stephanie benefit from?