What Is the Major Source of Long-Term Debt Financing for Most

question 156

Short Answer

What is the major source of long-term debt financing for most large corporations?
Corporate bonds
Long-term loans
Trade credit
Equity financing
Retained earnings

Identify the challenges and strategies in raising equity and debt financing for new and expanding businesses.

Know the terminology and concepts related to the timing and structure of financing in entrepreneurial ventures.

Understand the principles of entrepreneurial finance, including the preference for cash sooner rather than later.

Identify the critical issues entrepreneurs face in creating value and securing financing.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, affecting the company's liquidity.

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting it for changes in non-cash accounts.

Patent Amortization

The process of expensing the cost of a patent over its useful life, reflecting the consumption of the patent's value over time.

Depreciable Asset

A tangible asset that is subject to depreciation, reflecting its loss in value over time due to wear and tear, or obsolescence.