Which of the Following Companies Has the Smallest Need for Short-Term

question 28

Multiple Choice

Which of the following companies has the smallest need for short-term financial planning?

• A)a company that produces Christmas decorations
• B)a toy manufacturer
• C)a company that makes condiments such as ketchup
• D)a company that provides catering services for weddings
• E)a retailer that sells bathing suits

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Definitions:

Credit Account

is a financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.

Small Business Owner

A proprietor of a business enterprise that typically has a limited number of employees and a relatively low volume of sales.

Trade Credit

A financial arrangement where a buyer can purchase goods on account, paying the supplier at a later date, often used to improve cash flow.

New Businesses

Entities that have been recently established and are in the early stages of their operational and financial life cycle, facing unique challenges such as market entry and funding.