which of the following is a source of short term capital.
Answer Details
Trade credit is a source of short-term capital. This means that a company can borrow money from its suppliers for a short period of time, usually to purchase goods or materials for its business operations. The company agrees to pay the supplier back, typically within 30 to 60 days, after it has sold the goods or received payment from its own customers. This type of financing allows a company to bridge its cash flow gap, ensuring it has the funds it needs to keep operating smoothly.