- 1 Marks
BCL – L1 – SA – Q10 – Types of Capital
Question
What is debt financing?
A Selling company shares
B Borrowing money
C Allocating profits to shareholders
D Investing in other companies
Answer
B
Explanation:
Debt financing involves borrowing money, typically through loans or bonds, to fund company activities. It does not involve selling shares (A), allocating profits (C), or investing in other companies (D). Option B is correct.
- Tags: Borrowing, Company Financing, Debt financing
- Level: Level 1
- Uploader: Samuel Duah