Business Studies

Match the list 1 with list 2.

Bank Overdraft Insist on the customer making an advance payment
Trade Credit Ensures regular monthly payments
Customer Advances Have an account with a bank
Selling Goods on Installment Excellent way to finance inventories

ANSWER

2,7,8,13


SOLUTION
A. Bank overdraft is allowed to only those customers who have a account with that bank. 
B. Trade credit is an excellent way to finance inventories where the inventories are taken on a short term credit basis. 
C. Customer Advances refers to the system where customer make advance payment for the product they purchase. 
D. Selling Goods on Installment refers to an arrangement where the product is sold against the payment in monthly installments for 6 months or 12 months. 
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Matrix Medium Published on 18th 08, 2020
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