The cost of trade credit involving cash discounts as a form of short-term financing is:

Question

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The cost of trade credit involving cash discounts as a form of short-term financing is usually greater than the cost of commercial bank credit. This is because the supplier offering the discount is essentially providing financing at a higher interest rate than what could be obtained through a commercial bank loan. However, trade credit may still be a preferred option for some businesses due to its convenience and flexibility.

The Cost of Trade Credit Involving Cash Discounts as a Form