MANAGEMENT

Detailed explanation-1: -Common sources of debt financing include business development companies (BDCs), private equity firms, individual investors, and asset managers.

Detailed explanation-2: -In simple terms, formal finance is financing capital that has been sourced from banks and other formal financial intermediaries, whereas informal finance is the capital which has been sourced from friends, family, relatives or private moneylenders (Elston et al.

Detailed explanation-3: -Debt financing includes bank loans; loans from family and friends; government-backed loans, such as SBA loans; lines of credit; credit cards; mortgages; and equipment loans.

Detailed explanation-4: -Debt financing occurs when a company raises money by selling debt instruments, most commonly in the form of bank loans or bonds. Such a type of financing is often referred to as financial leverage. As a result of taking on additional debt, the company makes the promise to repay the loan and incurs the cost of interest.