10 Questions
Industrial Reconstruction Bank of India (IRBI) provides financial assistance in the form of term lending facilities, subscribing to shares and debentures, underwriting the issue of securities, lending money, and guaranteeing term loans raised by companies. This is an example of _____________ financing.
supplier
Trade credit financing is a major source of _____________ financing for businesses.
short term
Manufacturers, wholesalers, and suppliers of goods or materials are known as _____________ creditors.
trade
Trade creditors sell tangible goods to other business concerns on the basis of _____________ payment.
deferred
Future payment credit is extended by business concerns with an intention to increase their _____________.
sales
Trade credit is extended because of custom that has been built up over _____________.
time
Trade credit is a form of _____________ loan.
cash
Ownership securities include _____________ and debentures.
shares
Businesses extend credit to increase _____________.
sales
Credit is considered the soul of _____________.
business
Explore the concept of trade credit in the context of distributive trade, where goods or services are sold on credit and payment is made at a later date. Learn about the significance of trade credit for small retailers and how it is obtained without formal debt agreements.
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