Which of the following sources of financing is considered spontaneous because it fluctuates naturally with changes in ordinary business operations/transactions without management making formal decisions?

Question

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Trade credit is considered a spontaneous source of financing because it arises from the normal course of business transactions without any formal decision made by management. It is typically provided by suppliers who offer delayed payment terms to their customers. Commercial paper, long-term bonds, notes payable, and equity are not considered spontaneous sources of financing as they are typically obtained through formal financing decisions made by management.

Which of the Following Sources of Financing Is Considered Spontaneous