Write a word or a term or a phrase which can substitute the following statement. Credit extended by the suppliers with an intention to increase their sales. - Secretarial Practice

Write a word or a term or a phrase which can substitute the following statement.

Credit extended by the suppliers with an intention to increase their sales.

One Word/Term Answer

Credit extended by the suppliers with an intention to increase their sales. - Trade Credit

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Sources of Borrowed Capital - Trade Credit

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Chapter 2: Sources of Corporate Finance - Exercises [Page 35]

Chapter 2 Sources of Corporate Finance
Exercises | Q 1. C) 13. | Page 35

State whether the following statement is true or false.

Trade credit is major source of long term finance.

Complete the sentence.

When goods are delivered by supplier to customer on basis of deferred payment it is called as ______

Select the correct option from the bracket.

Group 'A'	Group B'
a) Equity shares	1) ____________
b) ____________	2) Dividend at fixed rate
c) Debentures	3) ____________
d) ____________	4) Accumulated corporate profit
e) Public Deposit	5) ____________

(Fluctuating rate of dividend, Preference shares, Interest at fixed rate, Retained earnings, Short term loan)

Explain the following term/concept.

Trade credit

Answer in brief.

What is trade credit?

Justify the following statement.

Trade credit is not cash loan.

Justify the following statement.

Trade credit is the soul of business.