Which would be the best way to obtain short-term financing?

Question

Quizplus · Accepted Answer

Establishing a line of credit with a bank is the most common and efficient way to obtain short-term financing. It allows the business to access funds as needed and pay interest only on what is borrowed. Issuing common stock or selling debentures are not short-term financing options, as they involve long-term investment from shareholders. Accepting accounts receivable as payment for goods may provide short-term financing but depends on the creditworthiness of their customers and does not guarantee immediate cash flow.

Which Would Be the Best Way to Obtain Short-Term Financing