Business Studies

Identify the merit(s) of Trade credit.


ANSWER

All of the above


SOLUTION
Trade credit can be defined as delay of payment permitted by the creditor or supplier of raw materials, consumables etc. against the goods purchased from him. Merits of Trade credit are:a) It reduces the capital requirement.b) It helps the business focus on core activities.
c) It does not require any negotiation or formal agreement.
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