QuestionJune 8, 2025

Which of the following is not a form of debt financing? A loan from the Small Business Administration (SBA) Crowdfunding Personal credit cards A bank loan Borrowing from family and friends

Which of the following is not a form of debt financing? A loan from the Small Business Administration (SBA) Crowdfunding Personal credit cards A bank loan Borrowing from family and friends
Which of the following is not a form of debt financing?
A loan from the Small Business Administration (SBA)
Crowdfunding
Personal credit cards
A bank loan
Borrowing from family and friends

Solution
4.1(305 votes)

Answer

Crowdfunding Explanation 1. Identify Debt Financing Forms Debt financing involves borrowing money that must be repaid with interest. Common forms include loans and credit cards. 2. Analyze Each Option - A loan from the SBA is debt financing. - Crowdfunding involves raising small amounts of money from many people, typically not requiring repayment. - Personal credit cards are a form of debt financing. - A bank loan is debt financing. - Borrowing from family and friends is debt financing if it involves repayment.

Explanation

1. Identify Debt Financing Forms<br /> Debt financing involves borrowing money that must be repaid with interest. Common forms include loans and credit cards.<br /><br />2. Analyze Each Option<br /> - A loan from the SBA is debt financing.<br /> - Crowdfunding involves raising small amounts of money from many people, typically not requiring repayment.<br /> - Personal credit cards are a form of debt financing.<br /> - A bank loan is debt financing.<br /> - Borrowing from family and friends is debt financing if it involves repayment.
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