Privately held for 18 years, Superior Chemicals Inc. has finally decided to go public. The owners are in the process of deciding whether to use debt or equity financing to finance growth after the initial public offering
-If,at some point in the future,Superior offers corporate bonds,it will be practicing a form of equity financing.

Question

Quizplus · Accepted Answer

Offering corporate bonds is a form of debt financing, not equity financing, because it involves borrowing money from investors that must be repaid with interest.

Privately Held for 18 Years, Superior Chemicals Inc