Which of the following is an advantage of trade credit?
A) Trade credit is conveniently obtained as a normal part of the firm's operations.
B) No formal agreements are generally involved in extending credit.
C) The amount of credit extended expands and contracts with the needs of the firm.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the above options are advantages of trade credit. Trade credit is convenient because it is often already included in a firm's normal operations. It does not require formal agreements, which can save time and effort. Finally, the amount of credit available can fluctuate with the needs of the firm, making it a flexible option.

Which of the Following Is an Advantage of Trade Credit