An example of a direct form of funding is:

Question

Quizplus · Accepted Answer

An issue of debentures is a direct form of funding as the company is directly borrowing money from investors by issuing debentures (a type of bond) without the involvement of any financial intermediaries. Option A involves intermediaries like banks, venture capitalists, or angel investors, who act as intermediaries between the company and investors. Option B involves issuing shares to existing shareholders as part of their ownership in the company, which is not a direct form of funding. Option D involves investing in debentures issued by other companies, which again, doesn't qualify as a direct form of funding for the issuer company.

An Example of a Direct Form of Funding Is