Kevin wants to open his own car repair shop. To do that he will need tools and other equipment. The two methods Kevin can use to pay for these items are:
A) cash flow and balance sheets.
B) accounts receivable and accounts payable.
C) assets and liabilities
D) debt and equity.

Question

Quizplus · Accepted Answer

The two methods that Kevin can use to pay for the tools and equipment for his car repair shop are debt and equity financing.

Debt financing involves borrowing money that must be paid back over time with interest, such as a business loan from a bank. This can be a good option if Kevin has a strong credit history and can secure favorable loan terms.

Equity financing involves selling a portion of the business to investors in exchange for funding. This can be a good option if Kevin doesn't want to take on debt or if he is unable to secure a loan, but it does mean that he will have to give up some control over his business.

Ultimately, the choice between these two methods will depend on Kevin's financial situation and his goals for his business. However, given that Kevin is just starting out and may not have a strong credit history or established business, equity financing may be the better choice as it doesn't require additional debt payments and can provide necessary capital to start and grow the business.

Kevin Wants to Open His Own Car Repair Shop