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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

1.7 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
1.8 What is an advantage of trade credit?
a. It provides interest-free financing
b. It requires collateral or security
c. It is a low-cost source of funds
d. It affects ownership of the business
1.9 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 long-term projects or investments
1.10 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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