Suppose there is a startup Alpha founded last year in a very promising industry with a lot of growth opportunities.

(1) This year Alpha considers raising more funds for expanding its business and innovations, it could either choose to raise funds by issuing equities to some venture capitals or choose to issue some debts. Which way do you think is a better choice? Why?

(2) Suppose this year Alpha also earns considerable profit, what are the two ways to deal with the profit? Which way is better in this case, and why?