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Business Studies

Pre-Shipment Finance

Factors to co...

Question

Factor(s) to consider before choosing trade credit or bank credit is/are _______.

A

Rate of interest

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B

Processing fees

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C

Foreclosure charges

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D

All of the above

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Solution

The correct option is D All of the above
Trade credit is provided by the suppliers whereas bank credit is provided by the banking companies. Factors to consider before choosing trade credit or bank credit are:a) Rate of interest
b) Processing fees
c) Foreclosure charges.

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