Anisha,an entrepreneur,starts a real estate firm with very limited funds.In order to conduct business,she purchases a few laptops,LED screens,and other office equipment from a local electronics wholesaler.The wholesaler understands her financial situation and allows her to pay for the goods in installments.In this scenario,the type of funding obtained by Anisha 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. This is exactly what happened between Anisha and the wholesaler.

Anisha,an Entrepreneur,starts a Real Estate Firm with Very Limited Funds