What is the most common form of short-term financing?
A) trade credit
B) factoring
C) sale of stock
D) bank loans

Question

Quizplus · Accepted Answer

Trade credit is the most common form of short-term financing as it involves the supplier extending credit to the buyer, allowing the buyer to delay payment for goods or services received. This is a common practice among businesses and can provide a valuable source of short-term financing, especially for small businesses. Factoring and bank loans may also be used for short-term financing, but they are not as common as trade credit. The sale of stock is a form of long-term financing and is not typically used for short-term financing needs.

What Is the Most Common Form of Short-Term Financing