The source of capital most commonly used by businesses of all types is:

Question

Quizplus · Accepted Answer

Debt is the most commonly used source of capital for businesses of all types. This is because debt financing involves borrowing money that must be repaid with interest, which allows businesses to maintain control over their operations and avoid diluting shareholder equity. Additionally, interest on debt is tax-deductible, making it a more cost-effective option for businesses than equity financing. Bonds are also a form of debt financing, but they are typically used by larger companies with established credit ratings. Credits, equity, and derivatives are other sources of capital, but they are not as commonly used as debt financing.

The Source of Capital Most Commonly Used by Businesses of All