Other sources of capital - SS1 Commerce Past Questions and Answers - page 1
What is trade credit?
Long-term borrowing facility
Delayed payment to suppliers
Equipment leasing agreement
Which source of capital involves obtaining the use of equipment without purchasing it outright?
Trade credit
Equipment leasing
Bank loan
What is the primary purpose of obtaining credits?
Accessing short-term financing
Accessing short-term financing
Acquiring equipment on lease
Which source of capital allows businesses to purchase goods or services on credit?
Equipment leasing
Trade credit
Bank loan
What does equipment leasing involve?
Accessing short-term financing
Obtaining the use of equipment from a leasing company
Delayed payment to suppliers
State one advantage of trade credit for businesses.
Trade credit allows businesses to obtain necessary supplies without immediate payment, helping them manage their cash flow effectively.
What is the primary benefit of equipment leasing for businesses?
What is the primary benefit of equipment leasing for businesses?