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Describe the disadvantages of Trade Credit as a source of short-term finance. - Commercial Studies

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प्रश्न

Describe the disadvantages of Trade Credit as a source of short-term finance.

थोडक्यात उत्तर

उत्तर

  1. Trade credit can generate only limited amount of funds for a short period.
  2. Easy availability of trade credit may induce a firm for overtrading which may increase risks.
  3. Trade credit is generally a costly source of finance.
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Trade Credit
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पाठ 10: Sources of Finance - QUESTION BANK [पृष्ठ १७२]

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गोयल ब्रदर्स प्रकाशन Commercial Studies [English] Class 10 ICSE
पाठ 10 Sources of Finance
QUESTION BANK | Q 17. iii. | पृष्ठ १७२
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