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Susan and Joseph are partners in a firm of car manufacturing. They are planning to merge their firm SJ Ltd. with a retain car seller in order to expand their business and maximize the profits. For this merger, SJ Ltd. need a short-term loan. They have chosen Trade credit to finance them for this merger to take place. State whether trade credit being a short-term funding way is true or false. 
  • a)
    True
  • b)
    False
Correct answer is option 'A'. Can you explain this answer?
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Susan and Joseph are partners in a firm of car manufacturing. They are...
Trade credit means many things but the simplest definition is an arrangement to buy goods and/or services on account without making immediate cash or cheque payments. Trade credit is a helpful tool for growing businesses, when favourable terms are agreed with a business's supplier.
For example, a customer is granted credit with terms of 4/10, net 30. This means that the customer has 30 days from the invoice date within which to pay the seller.
Trade credit extended to a customer by a firm appears as accounts receivable. Browse hundreds of guides and resources.
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Susan and Joseph are partners in a firm of car manufacturing. They are planning to merge their firm SJ Ltd. with a retain car seller in order to expand their business and maximize the profits. For this merger, SJ Ltd. need a short-term loan. They have chosen Trade credit to finance them for this merger to take place. State whether trade credit being a short-term funding way is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Susan and Joseph are partners in a firm of car manufacturing. They are planning to merge their firm SJ Ltd. with a retain car seller in order to expand their business and maximize the profits. For this merger, SJ Ltd. need a short-term loan. They have chosen Trade credit to finance them for this merger to take place. State whether trade credit being a short-term funding way is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Susan and Joseph are partners in a firm of car manufacturing. They are planning to merge their firm SJ Ltd. with a retain car seller in order to expand their business and maximize the profits. For this merger, SJ Ltd. need a short-term loan. They have chosen Trade credit to finance them for this merger to take place. State whether trade credit being a short-term funding way is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer?.
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