A supplier who allows a business 90 days to pay for merchandise is actually providing short-term capital.

Name: A supplier who allows a business 90 days to pay for merchandise is actually providing short-term capital.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because allowing a business 90 days to pay for merchandise effectively gives the business access to the merchandise (or capital) for those 90 days without immediate payment, acting as a short-term loan or credit.

A Supplier Who Allows a Business 90 Days to Pay