Financing a corporation with debt means borrowing or ________.

Question

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Financing a corporation with debt typically involves selling bonds to investors in order to raise capital. This creates a liability for the corporation to repay the principal amount plus interest to the bondholders over a predetermined period of time. Options A and B are not typically used for financing a corporation with debt, and option C refers to the opposite action of lending money to customers.

Financing a Corporation with Debt Means Borrowing or ________