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Due to several years of poor performance, Scrappy's Metal Fabrication, Inc., is closing. Through the use of debt financing, workers plan to purchase the company's stock from current shareholders in order to buy the firm, improve company performance, and save jobs. True False

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Answer: True

Explanation: Debt financing is when firm raises money for its capital or capital expenditure by selling bonds, bill or notes to individual or institutional investors. There are two main ways of debt financing, they are; selling bonds, bills and note and the second is long term loan from family, individual or banks.

So through the use of debt financing, the workers can purchase the company's stock to buy the firm and saves jobs.

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