Trade credit is seldom used by firms and is an insignificant component of short-term debt for most firms.

Name: Trade credit is seldom used by firms and is an insignificant component of short-term debt for most firms.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

Trade credit is a common form of short-term financing used by firms, especially small businesses. It refers to the credit extended by suppliers to the firms for purchases of goods and services. Trade credit is an important component of short-term debt for many firms.

Trade Credit Is Seldom Used by Firms and Is an Insignificant