Debt financing

1. Describe the three sources of funds and how they are used in a business.

2. Describe the two sources of financing available to a company.

3. What are the risks and rewards of debt financing?

1. How are ratios used to assess the risk and reward of debt financing?

2. What are the rewards and risks of equity financing?

3. How is equity financing used?

1. What are the advantages of a sole proprietorship and a partnership?

2. What is mutual agency and why is it risky?

3. What is unlimited liability and why is it considered a disadvantage for a partnership?


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