Which of the following is a source of short term capital?

A. trade credit
B. shares
C. leasing
D. debenture

Correct Answer: Option A

A. trade credit

Explanation

Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organizations as a source of short-term financing. It is granted to those customers who have a reasonable amount of financial standing and goodwill.