Question

By borrowing $10 million from First Dayton Bank, Hi-Lo Industries is utilizing ________.

A. equity financing.
B. debt financing.
C. liability funding.
D. asset funding.

Answer 1

Hi-Lo Industries is utilizing debt financing by borrowing $10 million from First Dayton Bank.

Step-by-step explanation:

Hi-Lo Industries is utilizing debt financing by borrowing $10 million from First Dayton Bank. Debt financing involves borrowing money from external sources (such as banks) and repaying it with interest over a specified period of time. This allows the company to access the necessary funds without diluting ownership or control.