Trade credit is a convenient and continuous source of funds, which is one of the __________ of trade credit.

Limitations

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Merits

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Functions

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Objectives

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Solution

The correct option is B Merits
Trade credit is a short term source of finances where a trader credits finances to another trader for the smooth flow of business. Trade credit is a convenient and continuous source of funds as it is a short term credit and has a low amount value hence can be taken without long term financial plannings. This is one of the merits of trade credit.

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