MP Board · Class 11 · Business Studies · Sources of Business FinanceTrade credit provides finance for:
Step-by-Step Solution
Trade credit is credit extended by suppliers of goods and services, helping businesses finance their short-term working capital needs for purchasing goods.
Detailed Options Breakdown
Option : Purchasing land
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 1: Purchasing raw materials / goods (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Buying heavy machinery
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 3: Repaying long-term loans
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
💡 Study Guide: This question tests core syllabus concepts from Sources of Business Finance. For formulas, key summaries, and mock exam reference guides, read the full Sources of Business Finance Revision Notes.