Which of the Following Statements Is (Are) Correct with Respect

question 92

Short Answer

Which of the following statements is (are) correct with respect to financing a business?
Debt financing refers to money that is borrowed, while equity financing refers to money that is invested in the business by investors in return for a share of the ownership of the company.
The most common source of debt financing is venture capitalists.
Choosing between debt and equity financing involves trade-offs with regard to immediate vs. long-term profitability.
Most new venture founders prefer equity financing because they are reluctant to give up any control to outsiders.
All these statements are correct.

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Definitions:

Trial Balance

A trial balance is a bookkeeping report that lists the balances in each of an organization's general ledger accounts in a specific moment in time, typically at the end of an accounting period.

Mathematical Equality

A statement indicating that two mathematical expressions or quantities are identical in value.

Debits And Credits

The two sides of every financial transaction in double-entry bookkeeping; debits must equal credits for each entry to balance.

Alphabetic Order

A method of arranging items or information according to the sequence of the letters in the English alphabet.