Question

    Which of the following credit facilities is typically

    used for financing the day-to-day operations of a business?
    A Term Loan Correct Answer Incorrect Answer
    B Cash Credit Correct Answer Incorrect Answer
    C Bank Guarantee Correct Answer Incorrect Answer
    D Letter of Credit Correct Answer Incorrect Answer
    E Overdraft Correct Answer Incorrect Answer

    Solution

    Cash Credit is a short-term financing facility typically used for covering day-to-day business operations such as purchasing current assets like raw materials, maintaining receivables, and managing stocks

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