Question

George owns a pizzeria in Brooklyn, and he buys his cheese and dough and sauce from SYSCO. This firm provides its customers with the most widely used source of short-term funding, since it is the least expensive and the most convenient way of buying goods and services and paying for then later. This practice very popular among small businesses and large businesses alike is called?

	a.	Trade Credit
	b.	Short-Term Financing
	c.	Commercial Finance
	d.	Revolving Credit Agreements

Answer 1

This practice normally comes under the ambit of a trade credit where firms provides its customers that purchase goods from the former, a Credit where the customers aren't require to pay immediate payment for the purchase..

So the answer for the above question will be trade credit.. and hence it's option (c).

Here the meaning of Trade credit :-

Trade credit is the loan extended by one trader to another when the goods and services are bought on credit. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short-term financing.