The form of financing called __________ requires collateral that pledges business assets or personal assets as security in case of default.
A) equity financing
B) venture capital
C) debt financing
D) initial public offering

Question

Quizplus · Accepted Answer

Debt financing requires collateral as security in case of default, while equity financing does not require collateral but instead involves selling ownership in the business. Venture capital is a type of equity financing, and an Initial Public Offering (IPO) involves selling shares of a company to the public for the first time, also a form of equity financing.

The Form of Financing Called __________ Requires Collateral That Pledges