An example of an indirect form of funding is a/an:
A) issue of debentures.
B) issue of unsecured notes.
C) term loan.
D) issue of shares.

Question

Quizplus · Accepted Answer

A term loan is an example of an indirect form of funding as it involves borrowing money from a financial institution or bank, rather than directly raising funds from investors or shareholders. Option A (issue of debentures) and B (issue of unsecured notes) are both examples of direct forms of funding where companies raise capital by issuing debt securities. Option D (issue of shares) is a direct form of funding where companies raise money by issuing equity securities.

An Example of an Indirect Form of Funding Is A/an