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 is generally the largest source of short-term credit for small firms. Trade credit refers to the credit extended by suppliers to the firms that buy goods or services from them. This credit allows small firms to delay payment for their purchases, freeing up cash for operations and investment in the short term.

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