Obtaining funds for a business by borrowing, such as through the bond market, is called _____ finance.
A) money
B) liability
C) debt
D) equity

Question

Quizplus · Accepted Answer

Debt finance is when a business borrows money, typically through the sale of bonds, which they will later have to pay back over time with interest. This is in contrast to equity finance, where a business raises funds by selling ownership shares to investors.

Obtaining Funds for a Business by Borrowing, Such as Through