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Trade credit is granted to customers who have reasonable financial standing and:
AMachinery
BWarehouses
CTrademarks
DGoodwill
Answer & Solution
Correct answer: D. Goodwill
1. Reputation and past payment record matter.
2. The seller judges creditworthiness.
3. So goodwill is required.
_Source: NCERT Class 11 Business Studies, Chapter 8, Sources of Business Finance._
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