Which of the following is the most commonly used source of short-term financing for businesses?
A)trade credit
B)bank loans
C)factoring
D)family and friends

Question

Quizplus · Accepted Answer

Trade credit is the most commonly used source of short-term financing for businesses. This involves purchasing goods or services on credit from suppliers and paying for them at a later date, typically within 30-90 days. It is a convenient and flexible form of financing, as it does not require collateral or an application process, and can be negotiated with each supplier individually. Bank loans, factoring, and borrowing from family and friends are also options for short-term financing, but they may have more requirements or limitations.

Which of the Following Is the Most Commonly Used Source