ABSTRACT

Almost every business uses some form of debt in a variety of ways and from a variety of sources. Businesses use debt to support day-to-day operations and also to purchase long-term assets such as land, buildings, and equipment. Debt can be created simply by buying raw materials from a supplier on credit. On the other hand, debt also can include extremely complex instruments that finance business expansion through acqui - si tions. It is important to create a plan for the use of debt in any business. Typically, this plan will involve the use of several different types of debt from several different sources.