Juxiplex, an electronics company, introduced a new range of smart phones. It bought the required raw materials from Gunplet Inc. without making payment at the time of purchase. Instead, Gunplet Inc. allowed Juxiplex to pay within fifteen days from the time of purchase. Which of the following short-term financing options was used by Juxiplex in the given scenario?
A) Factoring
B) Trade credit
C) Short-term bank loans
D) Commercial paper

Question

Quizplus · Accepted Answer

Juxiplex used trade credit, which is when a supplier allows a buyer to purchase goods or services and pay for them at a later date.

Juxiplex, an Electronics Company, Introduced a New Range of Smart