which of the following is a source of short term capital.
COMMERCE
WAEC 2017
which of the following is a source of short term capital.
- A. trade credit
- B. shares
- C. leasing
- D. debenture
Correct Answer: A. trade credit
Explanation
Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short-term financing. It is granted to those customers who have reasonable amount of financial standing and goodwill.
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