Which of the following is typically the largest source of short-term credit for a firm? bank...

Which of the following is typically the largest source of short-term credit for a firm?

bank loans
trade Credit
factoring
asset-backed public offerings

Expert Solution

TRADE CREDIT is generally the largest source of short-term credit for both the small firm and the large firm. The need for the trade credit arise automatically as it is a spontaneous transaction arising out of purchase.

All the other options are false as they are not the largest source of short-term credit

Correct answer is option (B) Trade credit.

jeff jeffy answered 2 years ago

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