Which one of the following types of debt is the most common for new ventures that do obtain debt financing?
A) Guaranteed by personal assets.
B) Asset-based financing.
C) Supplier credit.
D) A and B only.
E) A, B, and C.

Question

Quizplus · Accepted Answer

New ventures often rely on a combination of debt types for financing. This includes loans guaranteed by personal assets of the entrepreneur, asset-based financing where loans are secured against company assets, and supplier credit, which involves obtaining goods or services from suppliers on deferred payment terms. All these forms are common as they provide different mechanisms for startups to leverage for initial capital and operational needs.

Which One of the Following Types of Debt Is the Most