Home › MBA › Business Studies › Sources of Business Finance › Seasonal businesses that build stock before the …
Seasonal businesses that build stock before the selling season typically need:
ALong-term debentures
BLifetime bank capital
CShort-term financing
DPermanent share capital
Answer & Solution
Correct answer: C. Short-term financing
1. Stock is held only for the interim period.
2. Cash returns after the season.
3. So short-term financing is used.
_Source: NCERT Class 11 Business Studies, Chapter 8, Sources of Business Finance._
Related questions
Trade credit is granted to customers who have reasonable financial standing and:In the buyer's records, trade credit appears as sundry creditors or:Credit extended by one trader to another for buying goods is:Excessive ploughing back of profits may cause dissatisfaction because shareholders get:Which is a merit of retained earnings?Profits kept back in the business instead of paid as dividend are:A limitation of internal sources of funds is that they:Suppliers, lenders and investors outside the firm are: