Final answer:
The term for borrowing money that must be repaid to start a business is "Debt financing." This is different from other forms of raising financial capital, such as engaging with angel investors or issuing stock, as it involves a repayment obligation. The correct option is C.
Step-by-step explanation:
The term that refers to borrowing money that must be repaid in order to start a business is c. Debt financing. This type of financing occurs when a business owner takes out a loan, which might be achieved by using personal assets as collateral. Examples include using one's home to secure a loan or obtaining funds from a bank.
Business owners have a few options when it comes to raising the necessary financial capital for their new company. They can use their own savings, engage with angel investors, or consider other forms of investment such as venture capital or equity financing. However, when money is borrowed and requires repayment, possibly with interest, this is specifically known as debt financing.
It's crucial for business owners to carefully select their source of financial capital. They have to consider the obligations that come with different financing methods, such as the repayment of loans in debt financing or selling stock in equity financing, and how it will affect their business in the long term.