The Most Common Source of Debt Financing Is

question 77

Multiple Choice

The most common source of debt financing is

• A)trade credit.
• B)factoring.
• C)commercial banks.
• D)finance companies.

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Definitions:

Gross Profit

The financial metric determined by subtracting the cost of goods sold from revenue, representing the profit a company makes after accounting for the costs directly associated with production.

Gross Profit

The amount remaining from sales revenue after subtracting the cost of products sold, prior to removing expenses for overhead, wages, taxes, and interest.

Operating Expenses

Costs incurred during the normal operations of a business, such as sales and marketing, administration, and cost of goods sold.

Gross Margin

The difference between sales and the cost of goods sold, which measures the profitability of the products sold before other expenses are deducted.