When a company borrows money from a bank or sells bonds,it is called ________.
A)capital structure financing
B)stock financing
C)equity financing
D)debt financing

Question

Quizplus · Accepted Answer

Debt financing involves a company borrowing money from a bank or selling bonds to investors. This creates a debt that must be repaid with interest, unlike equity financing where investors buy ownership in the company in exchange for funding.

When a Company Borrows Money from a Bank or Sells