The Flynn Company Started Business by Obtaining Financing Through Debt

question 214

Multiple Choice

The Flynn Company started business by obtaining financing through debt financing and equity financing.Which of the following statements is not correct?

• A)Equity financing refers to the money obtained through owners' contributions and reinvestments of profit.
• B)Debt financing refers to the money obtained through loans.
• C)The business is obligated to repay debt financing.
• D)The business is obligated to repay equity financing.

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Definitions:

Car Wreck

An unexpected and violent collision involving one or more vehicles, often resulting in damage and injury.

Blood

A vital bodily fluid in humans and animals that delivers necessary substances such as nutrients and oxygen to cells and transports metabolic waste products away.

Escape Conditioning

A form of negative reinforcement where a behavior is increased because it allows an individual to escape or avoid an unpleasant stimulus.

Aversive Event

An unfavorable or unpleasant event intended to decrease the likelihood of a behavior by association.