Debt financing is a form of business financing where funds are borrowed and must be repaid with interest over a specific period. Unlike equity financing, it doesn't dilute ownership. Key characteristics include a fixed repayment schedule, interest payments, and sometimes collateral requirements. ;
The correct answer is C. Debt, which refers to business financing where funds are borrowed and must be repaid with interest. Debt financing creates fixed obligations for businesses, unlike equity financing which dilutes ownership.
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