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Sort each source into debt or equity

Exercise and reference answers

Left
Debt
Items
  1. Item
    Term loan
    Answer
    Debt
  2. Item
    Common stock
    Answer
    Equity
  3. Item
    Preferred stock
    Answer
    Equity
  4. Item
    Corporate bond
    Answer
    Debt
  5. Item
    Retained earnings
    Answer
    Equity
  6. Item
    Mortgage loan
    Answer
    Debt
  7. Item
    Line of credit
    Answer
    Debt
  8. Item
    Venture capital
    Answer
    Equity
Right
Equity
Instructions
Swipe left if the firm has to repay it, right if it sells a share of ownership.

Explanation

_Source: OpenStax Introduction to Business, section 16.4 Raising Long-Term Financing_
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