Final answer:
In business, it is possible to accept a royalty instead of giving away equity. A royalty is a payment made to the owner of an asset or intellectual property in exchange for the use of that asset or property.
Step-by-step explanation:
In business, it is possible to accept a royalty instead of giving away equity. A royalty is a payment made to the owner of an asset or intellectual property in exchange for the use of that asset or property. Instead of giving away a percentage of ownership in a company, a business could agree to pay a royalty based on revenue or profit generated from the use of the asset.
For example, if a company wants to use a patented technology developed by another company, they can negotiate a royalty agreement instead of buying equity in the technology company. The company using the technology would pay a percentage of their revenue or profit to the technology company as a royalty.
While royalties can be a way for businesses to access resources without diluting their ownership, it's important to carefully consider the financial implications and long-term costs of royalty agreements.