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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

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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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