हिंदी

Describe the disadvantages of Trade Credit as a source of short-term finance.

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प्रश्न

Describe the disadvantages of Trade Credit as a source of short-term finance.

संक्षेप में उत्तर
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उत्तर

  1. Trade credit can generate only limited amount of funds for a short period.
  2. Easy availability of trade credit may induce a firm for overtrading which may increase risks.
  3. Trade credit is generally a costly source of finance.
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Trade Credit
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