Shopper's Choice Department Stores has fallen behind in payments to suppliers due to cash flow shortages. Some suppliers are withholding shipments to Shopper's Choice until they receive payments on overdue accounts. To meet their immediate needs, Shopper's Choice Department Stores should utilize
A) vulture capital.
B) long-term financing.
C) contingency capital.
D) short-term financing.

Question

Quizplus · Accepted Answer

Finance managers use short-term financing to run the day-to-day operations. This includes the purchase of inventory and supplies.

Shopper's Choice Department Stores Has Fallen Behind in Payments to Suppliers