QAEconomics › Acquiring funds through borrowing represents:

Acquiring funds through borrowing represents:

A. Debt financing

B. Venture capital

C. Speculative capital

D. Equity financing


Answer: A. Debt financing

For a company to raise the capital needed for business, two types of financing are used: equity financing and debt financing. Debt financing is simply the borrowing of money and paying back with interest. A loan is the most usual type of debt financing. This loan can be used to finance a company’s working capital or for acquisition.

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