Question

Which option is an example of a debt-funding source

Answer 1

Answer:

The option which is an example of a debt funding source can be banks, credit unions, or any external lender.

Explanation:

• Debt funding is when a company raises money by marketing bonds, bills and notes, etc. to the investors
• It differs from equity financing which is selling shares of the company.
• Debt funding must be paid back at an previously agreed date.
• If the business goes under, then the lenders have more rights on the property that will be liquidated than the share holders.