The financing method that involves an interest-bearing instrument, usually a loan, the payment of which is not directly related to the sales and profits of the venture is referred to as Blank______.Multiple choice question.crowd financingdebt financingpersonal financingequity financing
Question
The financing method that involves an interest-bearing instrument, usually a loan, the payment of which is not directly related to the sales and profits of the venture is referred to as Blank______.Multiple choice question.crowd financingdebt financingpersonal financingequity financing
Solution
The correct answer is "debt financing". This method involves borrowing money from a lender such as a bank, with the agreement to pay back the loan with interest. The repayment of this loan is not directly tied to the success or profits of the business.
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