Businesses acquire long-term financing from two major sources:

Question

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The two major sources of long-term financing for businesses are debt financing and equity financing. Debt financing involves borrowing money from lenders, such as banks or bondholders, and repaying it with interest over time. Equity financing involves raising funds by selling ownership shares in the company to investors, such as through initial public offerings (IPOs) or private placements. Both debt and equity financing have their own advantages and disadvantages, and the choice between the two will depend on a company's specific needs and financial situation.

Businesses Acquire Long-Term Financing from Two Major Sources