Explain trade credit and bank credit as sources of short-term finance for business enterprises.
Current assets of a business firm should be financed through:
(a) Current liability only
(b) Long-term liability only
(c) Both types (i.e. long and short-term liabilities)
Current assets of a business firm should be financed through
(a) current liability only
(b) long-term liability only
(c) both types (i.e. Long and short liabilities)
A business is part of a financial system in which there are two main parties - households that save money, and firms that invest the money for production. State true or false.
