As a result of cash flow shortages,Kellco Department Stores has fallen behind in payments to suppliers.Some suppliers are withholding shipments to Kelco until they receive payments on overdue accounts.To meet their immediate needs,Kellco Department Stores should utilize:
A)vulture capital.
B)short-term financing.
C)contingency capital.
D)long-term financing.

Question

Quizplus · Accepted Answer

Short-term financing, such as a line of credit or a short-term loan, can provide Kellco Department Stores with the immediate cash flow needed to pay suppliers and ensure that shipments continue. Vulture capital and contingency capital are not appropriate solutions for this specific situation, and long-term financing may not address the immediate cash flow needs of the company.

As a Result of Cash Flow Shortages,Kellco Department Stores Has