Debt and Equity Both Provide Sources of Funds for a Company

question 381

True/False

Debt and equity both provide sources of funds for a company.

---

Definitions:

PERT

An acronym for Project Evaluation and Review Technique, a project management tool used to plan, schedule, and control large projects.

Performance Milestone

Specific goals or targets reached in the progression of a project or performance of an individual or team, marking significant achievements or stages of development.

Variable Costs

Costs that change in proportion to the level of output or activity in a business.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of business activity levels.