Question

Which of the following fall under the short-term funds?

• A. Trade credit, Factoring, Banks, and Commercial Paper
• B. Trade credit, Factoring, Equity shares and Retained Earnings
• C. Trade credit, Commercial Paper, Preference shares and Retained Earnings
• D. Trade credit, Factoring, Equity shares and Preference shares

Answer 1

The correct option is A

Trade credit, Factoring, Banks, and Commercial Paper

Trade credit, Factoring, Banks, and Commercial Paper are short-term funds for short duration. Short term funds are those which are required for a period not exceeding one year.