A business obtains part of its short-term capital from?

A. bonds
B. debentures
C. trade credit
D. ordinary shares

Correct Answer: Option C

C. trade credit

Explanation

Trade credit is an essential tool for financing growth. Trade credit is the credit extended to you by suppliers who let you buy now and pay later. Any time you take delivery of materials, equipment or other valuables without paying cash on the spot, you’re using trade credit.