1.7 Intro to ED - ED Finance

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  1. What are the two main forms of financial capital?
    Debt financing and equity financing.
  2. What is Debt Financing?
    Debt finance is a capital instrument typically made by commercial banks that must be repaid within a specific time period based on a pre-established schedule.
  3. What are the two types of debt financing and what are they?
    • 1. Loans - the transfer of capital between a borrower and a single lending institution.
    • 2. Bonds - where debt is sold to many investors.
  4. What is the most common type of debt?
    A loan.
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1.7 Intro to ED - ED Finance
1.7 Intro to ED - ED Finance
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