Trade credit may be considered the least formal of all forms of financing.

Name: Trade credit may be considered the least formal of all forms of financing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Trade credit is an agreement between two businesses to extend credit to each other for goods or services. It is often based on trust and may not involve formal loan agreements or interest rates. Therefore, it is considered a less formal form of financing compared to bank loans, bonds, or equity financing.

Trade Credit May Be Considered the Least Formal of All