BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Loans
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Debt Financing
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Investment
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Keep the peace
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Detailed explanation-1: -Debt financing occurs when a company raises money by selling debt instruments to investors. Debt financing is the opposite of equity financing, which entails issuing stock to raise money. Debt financing occurs when a firm sells fixed income products, such as bonds, bills, or notes.
Detailed explanation-2: -Debt financing is when businesses raise funds by selling debt in their business (e.g. bonds, notes). Whatever the instrument, if a business raises capital through equity or debt, they are likely issuing a security.
Detailed explanation-3: -Definition: When a company borrows money to be paid back at a future date with interest it is known as debt financing. It could be in the form of a secured as well as an unsecured loan. A firm takes up a loan to either finance a working capital or an acquisition.