Question

A difference between debt financing and equity financing is that: Multiple Choice debt financing must be repaid, while repayment of equity financing is not required. equity financing must be repaid, while repayment of debt financing is not required. only debt financing can be used to purchase assets. only equity financing can be used to purchase assets.
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Answer #1

Answer:

The correct option for the given statement is Option(A). Debt financing must be repaid while repayment of equity financing is not required.

A difference between debt financing and equity financing is that " Debt financing must be repaid while repayment of equity financing is not required".

Explanation:

Debt financing is an untouchable assets. It has cost in the shape intrigue and should reimbursed inside foreordained time length. Though equity financing is a proprietor's assets. There is no such commitment to reimburse the equivalent and it has cost as profit which is additionally not required to pay.

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