Debt financing involves ________.
A) raising venture capital or securing a private placement
B) selling corporate bonds or selling stock via an IPO
C) getting a grant or selling corporate bonds
D) getting a loan or raising venture capital
E) getting a loan or selling corporate bonds

Question

Quizplus · Accepted Answer

Debt financing involves borrowing money and promising to repay it with interest. This can be done through obtaining a loan or by selling corporate bonds. Selling stock via an IPO or raising venture capital would be considered equity financing, while getting a grant is a form of non-debt financing. Therefore, the best choice for debt financing would be option E, which includes both getting a loan and selling corporate bonds as methods of raising capital through debt.

Debt Financing Involves ________