What type of funding does not typically need to be repaid?

• A. Loan
• B. Grant
• C. Mortgage
• D. Lease

Answer: (B)

Grants are a type of funding that typically do not need to be repaid. They are often provided by governments, foundations, or institutions to support specific projects, research endeavors, or community initiatives. Grants are usually given based on the applicant's ability to meet certain criteria or demonstrate a need for funding, emphasizing their purpose to assist individuals or organizations without the expectation of repayment.

In contrast, loans, mortgages, and leases all involve borrowing funds or obtaining services with the obligation to pay back the amount borrowed, often with interest. Loans and mortgages are financial products intended for individuals or businesses looking to acquire capital or property, while leases primarily pertain to renting assets or equipment. Thus, grants stand out as a unique funding source that alleviates the financial burden of repayment, making them particularly valuable for startups and nonprofit organizations.