Debt financing is financing obtained from:
A)stockholders.
B)creditors.
C)selling goods or services on credit.
D)both creditors and stockholders.

Question

Quizplus · Accepted Answer

Two sources of financing are available to businesses: equity and debt.Equity refers to financing a business through owners' contributions and reinvestments of profit.Debt refers to financing the business through loans.A business is obligated to repay debt financing,but it is not obligated to repay its equity financing.

Debt Financing Is Financing Obtained From