A business obtains part of its short-term capital from
-
A.
bonds -
B.
debentures -
C.
trade credit -
D.
ordinary shares
Correct Answer: Option C
Explanation
Trade credit is an essential tool for financing growth. Trade credit is the credit extended to you by suppliers who let you buy now and pay later. Any time you take delivery of materials, equipment or other valuables without paying cash on the spot, you’re using trade credit.