What are the two main aspects of financing?

The correct understanding of the primary aspects of financing lies in the ways a company funds its operations and growth. "Borrowing" refers to obtaining funds from external lenders, which typically involves loans or bond issuance. On the other hand, "Selling Ownership" involves raising capital through selling equity or shares in the company, offering ownership stakes to investors in exchange for funds.

Together, these two methods encompass the fundamentals of financing—acquiring necessary funds to support business activities. This distinction is vital in understanding corporate finance as it reflects how businesses leverage their financial structure to operate and expand.

While the other concepts mentioned in the incorrect choices represent important activities in a business, they do not provide a clear framework for the dual aspects of financing. The use of funds acquired through borrowing and equity sales, however, directly correlates with a company's financial strategy and its ability to withstand market fluctuations and pursue growth opportunities.