What is generally the largest source of short-term credit 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. This involves the purchase of goods and services on credit from suppliers, allowing the small business to delay payment and free up cash flow in the short term. Bank loans, commercial paper, and installment loans may also be sources of short-term credit, but they are often harder to obtain for small businesses and may come with higher interest rates or collateral requirements.

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