Which of the following is considered a source of short-term financing?

QUESTION

Which of the following is considered a source of short-term financing?

A) debt financing
B) equity financing
C) trade credit
D) secured bond
E) unsecured bond

ANSWER

Answer: C
Explanation: C) Sources of short-term financing are trade credit, short-term loans, factoring, and commercial paper. Sources of long-term financing are long-term loans, debt financing, and equity financing.