An example of debt financing for any form of business organization is
A)issuing new stock.
B)buying back bonds.
C)borrowing from a bank.
D)using undistributed profits.
E)buying back previously issued stock.

Question

Quizplus · Accepted Answer

Borrowing from a bank involves taking out a loan that must be repaid with interest. This is an example of debt financing since the business is borrowing money that they must eventually pay back, rather than selling ownership or equity in the company.

An Example of Debt Financing for Any Form of Business