Answer: requires a smaller capital investment.

**Explanation:** - **Option A is incorrect**: An acquisition typically provides greater control over the target company compared to an equity investment, where the investor may only own a minority stake. - **Option B is correct**: Equity investments generally require smaller capital investments than full acquisitions, as they involve purchasing only a portion of the company rather than the entire entity. - **Option C is incorrect**: An acquisition results in a larger combined balance sheet as the acquiring company consolidates the target's assets and liabilities, whereas an equity investment is typically accounted for as an investment on the balance sheet without full consolidation.

Author: LeetQuiz Editorial Team