The most popular form of short-term financing is
A) bank loans.
B) trade credit.
C) sale of bonds.
D) sale of stock.
E) loans from insurance companies.

Question

Quizplus · Accepted Answer

Trade credit is the most popular form of short-term financing as it allows businesses to obtain goods or services from suppliers and pay for them at a later date, generally within a few weeks or a few months. This type of financing does not require any collateral, and is often extended to businesses that have a good credit history with their suppliers. Bank loans, sale of bonds, and sale of stock are options for long-term financing, while loans from insurance companies are not as common as trade credit.

The Most Popular Form of Short-Term Financing Is