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Which of the following is a short-term source of financing for a business organization?
  • a)
    Equity shares
  • b)
    Long-term bank loan
  • c)
    Trade credit
  • d)
    Retained earnings
Correct answer is option 'C'. Can you explain this answer?
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Which of the following is a short-term source of financing for a busin...
Trade credit is a short-term source of financing provided by suppliers to a business organization. It allows the organization to purchase goods or services on credit and make payment at a later date. Equity shares (a) represent long-term ownership in a company. A long-term bank loan (b) is a form of long-term financing. Retained earnings (d) are internal funds generated from profits.
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Which of the following is a short-term source of financing for a business organization?a)Equity sharesb)Long-term bank loanc)Trade creditd)Retained earningsCorrect answer is option 'C'. Can you explain this answer?
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