Businesses acquire long-term financing from two major sources:
A)debt financing and government funds.
B)debt financing and equity financing.
C)equity financing and trade credit.
D)retained earnings and commercial paper.

Question

Quizplus · Accepted Answer

Businesses acquire long-term financing from two major sources: debt financing and equity financing. Debt financing involves borrowing money from creditors such as banks or issuing bonds. Equity financing, on the other hand, involves selling ownership shares in the business to investors. Both sources have their advantages and disadvantages, and businesses often use a combination of both to finance their operations.

Businesses Acquire Long-Term Financing from Two Major Sources