A type of short-term financing used by many firms is:

Question

Quizplus · Accepted Answer

Bank overdraft is a common form of short-term financing used by many firms. It involves borrowing money from a bank by drawing more money than what is available in the account. This type of financing is flexible and can be used to cover short-term cash flow needs or unexpected expenses. Bank overdrafts are also relatively easy to obtain, especially for firms with a good credit rating. Hence, choice A is the best option.

A Type of Short-Term Financing Used by Many Firms Is