Credit Granted by One fiRm to Another fiRm Is Called

question 106

Multiple Choice

Credit granted by one firm to another firm is called:

• A) Consumer credit.
• B) Wholesale credit.
• C) Trade credit.
• D) Retail credit.
• E) Firm credit.

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Definitions:

Binding

Creating a legal obligation or a contract that is enforceable in a court of law.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights with respect to services, products, or transactions.

Writing

The act or process of creating symbols such as letters or numbers on a surface to communicate or record information.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing in order to be enforceable.