Multiple Select QuestionSelect all that applyWhat are three forms of debt financing that Jena can obtain to start a new online training program business for counselors?Multiple select question.A bank loan in the amount of $10,000Thirty-five new laptops given in exchange for a 2% share of the businessA $15,000 SBA loanPersonal savings of $20,000 that she combines with other existing assets
Question
Multiple Select QuestionSelect all that applyWhat are three forms of debt financing that Jena can obtain to start a new online training program business for counselors?Multiple select question.A bank loan in the amount of 15,000 SBA loanPersonal savings of $20,000 that she combines with other existing assets
Solution
The three forms of debt financing that Jena can obtain to start a new online training program business for counselors are:
- A bank loan in the amount of $10,000
- A $15,000 SBA loan
The option of "Thirty-five new laptops given in exchange for a 2% share of the business" is not a form of debt financing, but rather equity financing, as it involves giving away a portion of the business ownership in exchange for assets.
The option of "Personal savings of $20,000 that she combines with other existing assets" is also not a form of debt financing. This is personal equity or investment, as it involves using personal funds, not borrowed funds.
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