Which of the Following Is NOT an Advantage of Trade

question 94

Multiple Choice

Which of the following is NOT an advantage of trade credit versus a standard loan?

• A) Trade credit reduces a firm's collection float.
• B) If the buyer defaults, the supplier may be able to seize the inventory as collateral.
• C) The supplier may have more information about the credit quality of the customer than a bank.
• D) Providing financing at below-market rates is an indirect way to lower prices for only certain customers.

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