The most important source of spontaneous short-term funding for entities is normally:

Question

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Trade credit refers to the credit extended to a buyer by its suppliers to finance the purchase of goods and services. It is the most important source of spontaneous short-term funding for entities because it is a flexible form of financing, does not require any collateral, and the terms can be negotiated between the buyer and supplier. It also allows the buyer to delay payment until after the sale, providing additional working capital to meet operational needs.

The Most Important Source of Spontaneous Short-Term Funding for Entities