What is generally the largest source of short-term credit for small firms?
A) bank loans
B) commercial paper
C) installment loans
D) trade credit

Question

Quizplus · Accepted Answer

Trade credit, or credit extended by a vendor or supplier, is generally the largest source of short-term credit for small firms. This is because it is often easier for small firms to obtain credit from suppliers with whom they already have established relationships, and trade credit can be more flexible and faster to obtain than traditional bank loans or other forms of financing.

What Is Generally the Largest Source of Short-Term Credit for Small