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1 . 7 What is the main advantage of debt financing? a . It does not affect ownership of the business b . It provides
What is the main advantage of debt financing?
a It does not affect ownership of the business
b It provides equity financing without interest costs
c It is easily available for small businesses
d It does not require collateral or security
What is an advantage of trade credit?
a It provides interestfree financing
b It requires collateral or security
c It is a lowcost source of funds
d It affects ownership of the business
What is the purpose of factoring or invoice discounting?
a Obtaining trade credit from suppliers
b Selling debts to a third party for cash
c Acquiring assets through leasing or hire purchase
d Investing in longterm projects or investments
What is the main disadvantage of private equily financing?
a It requires collateral or security
b It involves high interest costs
c It affects ownership and profits
d It is difficult to find interested investors
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