Which Statement Concerning Trade Credit Is Not True

question 48

Multiple Choice

Which statement concerning trade credit is not true?

• A) Credit can be a more convenient method of paying for goods than cash.
• B) Trade credit is an important source of finance for most businesses.
• C) Trade credit is generally regarded as a 'free' source of finance.
• D) A discount of 1% offered for prompt payment of amounts owning to creditors is hardly worth taking.

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High Cost

A situation where the price of a good, service, or activity is considered to be excessively high relative to its perceived value or benefits.

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The use of radio broadcasts to promote products or services, taking advantage of the medium's wide reach to target specific demographics.