Which of the following is a major source of short-term financing that is interest free, usually requires no collateral, and is involved in some form in 70-90% of all transactions between businesses?
A) line of credit
B) secured loan
C) unsecured loan
D) trade credit

Question

Quizplus · Accepted Answer

Trade credit is a major source of short-term financing that is interest-free, usually requires no collateral, and is involved in some form in 70-90% of all transactions between businesses. Trade credit is simply the extension of credit by a supplier to a customer for the purchase of goods or services. It is a common practice in many industries and can be an important component of a business's working capital management strategy.

Which of the Following Is a Major Source of Short-Term