The two principal sources of financing for corporations are
A) debt and accounts payable.
B) debt and equity.
C) common equity and preferred equity.
D) cash and common equity.

Question

Quizplus · Accepted Answer

Debt and equity are the two primary sources of financing for corporations. Debt involves borrowing money from lenders, while equity involves selling ownership shares in the company to investors. A mix of debt and equity financing can help companies balance risk and reward, and achieve optimal capital structure. Options A, C, and D are either incomplete or incorrect.

The Two Principal Sources of Financing for Corporations Are