Which of the following is one of the most important sources of short-term financing for many firms?
A) donations
B) direct investment from owners
C) corporate bonds
D) trade credit

Question

Quizplus · Accepted Answer

Trade credit is one of the most important sources of short-term financing for many firms as it allows them to delay payment for goods and services received, thus providing them with temporary funds to finance their operations. This is a common practice in many industries, especially in retail and manufacturing, where firms rely on trade credit to purchase inventory and raw materials. Donations and direct investment from owners are not common sources of short-term financing, while corporate bonds are long-term financing instruments.

Which of the Following Is One of the Most Important