________ is a method of financing frequently used by retailers of "big ticket items" such as autos.
A) Discounted installment contracts
B) Trade credit
C) Installment loans
D) Floor planning

Question

Quizplus · Accepted Answer

Floor planning is a common financing method used by retailers of big ticket items such as automobiles. With floor planning, the retailer borrows money to purchase inventory and then uses that inventory as collateral for the loan. As the retailer sells the inventory, they pay back the loan and are able to purchase additional inventory with the proceeds. This allows retailers to keep their inventory levels high without having to tie up their own cash in the purchase of the inventory.

________ Is a Method of Financing Frequently Used by Retailers