What does a trade-credit effectively amount to?
A) Higher accounts payable.
B) Higher trust among companies in the same industry.
C) A loan to the entrepreneur's working capital.
D) Debt swaps.
E) None of the above

Question

Quizplus · Accepted Answer

A trade-credit effectively amounts to a loan to the entrepreneur's working capital, as it allows the business to purchase goods or services and pay for them at a later date, thus providing temporary financing.

What Does a Trade-Credit Effectively Amount To