Trade credit is needed to promote the ________ of an organisation.

Purchases

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Sales

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Drawings

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Capital

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Solution

The correct option is B Sales
Trade credit is commonly used by business organisations as a source of short-term financing. It is granted to those customers who have reasonable amount of financial standing and goodwill.If an organisation wants to increase
its inventory level in order to meet expected rise in the sales volume in the near future, it may use trade credit to, finance the same.

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Similar questions

___ is a voluntary organisation established to protect and promote the interests of underprivileged sections of society.

A. Organisations that seek to promote the interests of a particular section/group	I. Movement
B. Organisations that seek to promote common interest	II. Political parties
C. Struggles launched to the resolution of a social problem with or without an organizational structure	III. Sectional interest group
D. Organisations that mobilize people with a view to win political power	IV. Public interest groups

List I	List II
I. Organisations that seek to promote the interests of a particular section or group.	1. Movement
II. Organisations that seek to promote common interest.	2. Political Parties
III. Struggles launched for the resolution of a social problem with or without an organisational structure.	3. Sectional interest groups
IV. Organisations that mobilise people with a view to win political power	4. Public interest groups

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