When a company plans to expand by opening a new store, building a new manufacturing facility, or developing a new life-saving drug, they decide how to finance these long-term assets through low-cost, long-term funding sources. The two most common choices are the use of debt financing by taking on long-term liabilitles or equity financing by attracting additional investor owners. Understanding both of these types of financing is beneficial knowledge in today's business world. Read each item to determine if it represents debt financing or equity financing. 1. This funding must be paid back on the maturity date, which is usually over a number of years. 2. In this funding, common stock is the single most important source of capital for most companies. 3. This funding distributes earnings called dividends and are sent out with the approval of the Board of Directors. 4. Companies who rely too heavily on this type of funding can have serious trouble should the economy falter. 5. This funding is sourced through shares of stock that can also represent holdings and control. 6. This source of funding involves a face value, a sales price, and normally semiannual interest payments. 7. This type of funding is a contract and involves a contract rate of interest that does not change even if the Interest rates in the economy do. 8. Fundina that is invested as ownership for a share of the earnings and company value