Direct Financing Occurs When

question 32

Multiple Choice

Direct financing occurs when:

• A) an SSU borrows directly from a DSU.
• B) a DSU borrows directly from a SSU.
• C) an SSU borrows from the federal government.
• D) a DSU borrows from the federal government.

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Definitions:

Capital Contribution

The act of providing assets or funds to a partnership or company by its owners or partners to support its operations or start-up.

Seize Partnership Property

The act of taking control over property or assets owned by a partnership, often through legal or financial processes.

Personal Debt

Financial obligations incurred by an individual, as opposed to those owed by companies or governments.

Legal Action

The process of using the formal court system to resolve disputes, enforce laws, or seek redress.