A business obtains part of its short-term capital from

Assessment: WAEC SSCE - Commerce - 2014 (Objective) Subject: Commerce

Question 1 Report

A business obtains part of its short-term capital from

Answer Details
A business obtains part of its short-term capital from "trade credit". Trade credit is a form of financing where suppliers allow businesses to purchase goods or services on credit and pay at a later date, typically within 30 to 90 days. This allows the business to obtain the necessary goods or services without having to immediately pay for them in cash. Trade credit is a common source of short-term financing for many businesses, especially those with good credit history and established relationships with their suppliers. It is typically used to finance working capital needs, such as inventory or supplies, and can be an effective way to manage cash flow.

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