MANAGEMENT

Detailed explanation-1: -Description: Debt means the amount of money which needs to be repaid back and financing means providing funds to be used in business activities.

Detailed explanation-2: -Debt financing occurs when a firm sells fixed income products, such as bonds, bills, or notes. Unlike equity financing where the lenders receive stock, debt financing must be paid back. Small and new companies, especially, rely on debt financing to buy resources that will facilitate growth.

Detailed explanation-3: -Debt is money that is borrowed from financial institutions, individuals, or the bond market. Equity is money the company already has in its coffers or can raise from would-be owners or investors. The term “borrowed capital” is used to distinguish capital acquired with debt from capital acquired with equity.

Detailed explanation-4: -Debt financing is when you borrow money to run your business, as opposed to equity financing, in which you raise money from investors who are in return entitled to a share of the profits from your business.

Detailed explanation-5: -Debt financing is the type of financing in which companies obtain money for financing various business needs by issuing debt instruments and taking loans from banks or other financial institutions. Examples include bond issuance, business credit cards, term loans, peer-to-peer lending services, and invoice factoring.