Pooja is an entrepreneur who starts an IT firm with limited funds.In order to conduct her business,she acquires 12 laptops,15 desktops,and other accessories from a local electronics retailer.The retailer understands her financial situation and allows her to pay for the computers and accessories in installments.In this scenario,the type of funding obtained by her can be regarded as a _____.

Question

Quizplus · Accepted Answer

Trade credit is the correct answer because it refers to the agreement between businesses where the buyer is allowed to purchase goods or services and pay the supplier at a later date. In this scenario, Pooja is allowed to pay for the computers and accessories in installments, which is a characteristic of trade credit.

Pooja Is an Entrepreneur Who Starts an IT Firm with Limited