Which is better..debenture(or loan) or equity(shareholders) when it comes to financing a business?

so i have an exam tomorrow.i need to know which is beneficial for a business.borrowing money as a loan (due to which the company will have ti give a certain amount of fixed interest) or having shareholders (so u have someone to share the loss which the company incurs). which is safer and better? both have merits and demerits. kindly list! thanks :)