PRC-3 · Chapter 4 · Question 19 of 65
Which of the following describes an essential characteristic of debt financing (such as a bank loan)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It requires the payment of regular interest and repayment of the principal
Explanation
Debt financing obligates the borrower to pay a specific interest rate and return the borrowed principal by a stated maturity date.
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