A primary source of financing for most smaller companies is
A) trade credit.
B) long-term bank loans.
C) mortgages.
D) asset-based notes.

Question

Quizplus · Accepted Answer

Trade credit is a commonly used source of financing for smaller companies, as it allows them to obtain goods and services on credit from suppliers without having to pay upfront. This helps to conserve their cash flow and can provide a significant boost to their working capital. Long-term bank loans, mortgages, and asset-based notes may also be used by smaller companies, but these tend to be more difficult to obtain and may require collateral or a strong credit history.

A Primary Source of Financing for Most Smaller Companies Is