_____ is the raising of funds by selling _____.

Question

Quizplus · Accepted Answer

Debt finance involves borrowing money and paying it back with interest over a period of time. Bonds are a type of debt security where investors lend money to the issuer and receive interest payments until the bond matures, at which point the principal is returned. Therefore, option A is the correct choice as it matches the definition of raising funds by selling bonds through debt finance. Option B is incorrect as stocks represent ownership in a company, and selling stocks is a form of equity finance. Option C is also incorrect as it combines equity finance and bonds, which is not a common practice. Option D is incorrect as IOUs are simply promises to pay in the future and are not a formal financial instrument like debt securities.

_____ Is the Raising of Funds by Selling _____

_ Is the Raising of Funds by Selling _