Final answer:
Financing through debt is riskier because it requires fixed interest payments regardless of the organization's income, leading to potential financial distress, while equity financing does not have such obligatory payments.
Step-by-step explanation:
Financing through debt is indeed considered more "risky" to an organization versus selling common shares. This statement is True. When an organization opts for debt financing, be it through bank loans or issuing bonds, it obligates itself to regular interest payments, irrespective of its revenue performance. Failure to meet these obligations can lead to severe financial distress or even bankruptcy. On the other hand, equity financing through the sale of common shares may dilute ownership and decision-making control, but it does not require the same fixed financial commitment and, therefore, imposes less financial risk.