Borrowing money from another person, a bank, or a financial institution to start a business is called __________.
A) equity financing
B) initial public financing
C) debt financing
D) leasing

Question

Quizplus · Accepted Answer

Debt financing involves borrowing money that must be paid back with interest, which is a common way for entrepreneurs to fund their business without giving up ownership or control. This can be in the form of loans from a bank or financial institution or borrowing from family and friends. While there is a risk of defaulting on repayments, debt financing allows the entrepreneur to maintain ownership and control without diluting equity.

Borrowing Money from Another Person, a Bank, or a Financial