Many New Ventures Find That Debt Financing Is

question 36

Multiple Choice

Many new ventures find that debt financing is

• A) necessary.
• B) a waste of time.
• C) not an important consideration.
• D) their major source of funds.

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Definitions:

Internally Generated

Assets or resources that are created within an organization, without acquiring them from external sources.

Gain On Sale

The profit received from selling a capital asset for more than its purchase price.

Plant Asset

A long-term asset used in the production of goods or services, not expected to be consumed or converted into cash within a year.

Book Value

The worth of an asset as reported in the balance sheet, determined by subtracting any depreciation from the asset's initial cost.