Seltzer Darrigan borrowed $25,000 from his bank to open an art gallery. Darrigan used which type of financing?

Question

Quizplus · Accepted Answer

Seltzer Darrigan used debt financing by borrowing $25,000 from a bank, which he will have to pay back with interest over time. This is different from equity financing where he would receive investments in exchange for ownership in the company or venture financing where he would receive investments from venture capitalists to fund a high-risk business venture. Liquid financing refers to the ability of a company to convert its assets into cash quickly.

Seltzer Darrigan Borrowed $25,000 from His Bank to Open an Art