The two sources of financing available to businesses are known as,
A)common and preferred shares.
B)common shares and loans.
C)equity and liabilities.
D)equity and debt.

Question

Quizplus · Accepted Answer

The two sources of financing available to businesses are equity and debt. Equity financing involves selling ownership shares in the company to investors, while debt financing involves obtaining loans that must be repaid with interest. Both types of financing have their advantages and disadvantages, and companies will typically use a combination of both to meet their financing needs.

The Two Sources of Financing Available to Businesses Are Known