Question:medium

Funds raised through loans or borrowings are ________.

Updated On: Jan 13, 2026
  • Borrowed funds
  • Owner's equity
  • Share capital
  • Fixed capital
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The Correct Option is A

Solution and Explanation

Borrowed funds are monies obtained via loans or credit from external entities like banks, financial organizations, or private lenders. These are financial obligations that require repayment, including interest, within a defined timeframe. They are distinct from owner’s equity, share capital, and fixed capital, which represent internal capital or enduring investments.

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