Funds raised through loans or borrowings are ________.
- Borrowed funds
- Owner's equity
- Share capital
- Fixed capital
The Correct Option is A
Solution and Explanation
Borrowed funds refer to money raised through loans or borrowings from external sources such as banks, financial institutions, or individuals. These funds are liabilities and must be repaid with interest over a specified period. They are different from owner’s equity, share capital, and fixed capital, which represent internal funds or long-term investments.
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