Borealis Computing Is a Small Start-Up Firm That Needs to Purchase

question 41

Multiple Choice

Borealis Computing is a small start-up firm that needs to purchase essential equipment and supplies to begin operations.Gencent LLC, a larger firm, offers to finance Borealis Computing's purchases.Under their agreement, Borealis Computing will repay Gencent LLC overtime at a specified interest rate.In the context of non-equity funding, Gencent LLC's financing of Borealis Computing's purchases is an example of ________.

• A)supplier credit
• B)crowdfunding
• C)equity investment
• D)factoring

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Definitions:

Drones

Unmanned aerial vehicles (UAVs) that can be remotely controlled or fly autonomously through software-controlled flight plans in their embedded systems.

Total Cost

Represents the complete expenditure made by a company in manufacturing a product or offering a service, covering variable and fixed expenses.

Economic Costs

The total cost of choosing one action over another, including both explicit costs and opportunity costs.

Drone

An unmanned aerial vehicle (UAV) that can be remotely controlled or fly autonomously through software-controlled flight plans in embedded systems.