1.7 Intro to ED - ED Finance
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What are the two main forms of financial capital?
Debt financing and equity financing.
What is Debt Financing?
Debt finance is a capital instrument typically made by commercial banks that must be repaid within a specific time period based on a pre-established schedule.
What are the two types of debt financing and what are they?
- 1. Loans - the transfer of capital between a borrower and a single lending institution.
- 2. Bonds - where debt is sold to many investors.
What is the most common type of debt?
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