Which of the Following Best Describes the Type of Financing

question 64

Multiple Choice

Which of the following best describes the type of financing provided by government agencies such as the Small Business Administration?

• A) Debt financing
• B) Equity financing
• C) Public sources of financing
• D) Capital financing

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Definitions:

Contract

A legally upheld agreement involving two or more entities that carries legal obligations.

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet formally established, raising questions about liability and authority.

Promoter

A promoter is an individual or company involved in founding or organizing a business or enterprise, typically responsible for raising capital, arranging for necessary legal documents, and setting up operations.

Personally Liable

The legal responsibility of an individual to satisfy debts or obligations from their own assets.