What is the primary focus of debt financing?

The primary focus of debt financing is indeed arranging funding by borrowing money. This form of financing allows businesses to obtain necessary capital without diluting ownership, as the funds are acquired through loans or issuing bonds. By utilizing debt, companies can maintain full control while accessing immediate resources to invest in operations, growth, or other business needs.

Through debt financing, a business agrees to repay the borrowed amount over time, usually with interest, which highlights a key aspect of this financing method: the obligation to repay lenders regardless of the business's performance. It can potentially lead to increased capital for expansion and investments, provided the returns on that capital exceed the cost of borrowing.

In contrast, seeking funding through equity shares involves selling ownership stakes in the company, which is not the focus of debt financing. Minimizing operational costs and increasing revenue through investments, while important aspects of business management, do not directly pertain to the mechanism of obtaining funds through borrowing. Thus, the essence of debt financing is centered on the arrangement of money through loans, making the first option the correct answer.