Which form of financing needs to be repaid?

Question

Quizplus · Accepted Answer

Debt financing involves borrowing money that needs to be repaid, usually with interest. Equity financing involves acquiring funds from investors who become part owners of the company and are entitled to a share of profits but do not need to be repaid. Start-up capital and venture capital are both types of financing but do not necessarily need to be repaid; start-up capital is typically used to launch a new business or project, while venture capital is provided by investors who expect a high rate of return on their investment.

Which Form of Financing Needs to Be Repaid