{"id":21421,"date":"2024-04-15T06:05:59","date_gmt":"2024-04-15T06:05:59","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=21421"},"modified":"2024-04-15T06:05:59","modified_gmt":"2024-04-15T06:05:59","slug":"short-term-finance-is-usually-for-a-period-ranging-up-to-a-5-months-b-10-months-c-12-months-d-15-months","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/short-term-finance-is-usually-for-a-period-ranging-up-to-a-5-months-b-10-months-c-12-months-d-15-months\/","title":{"rendered":"Short-term finance is usually for a period ranging up to A. 5 months B. 10 months C. 12 months D. 15 months"},"content":{"rendered":"

[amp_mcq option1=”5 months” option2=”10 months” option3=”12 months” option4=”15 months” correct=”option1″]<\/p>\n

The correct answer is A. 5 months.<\/p>\n

Short-term finance is a type of financing that is used to meet short-term needs, such as covering operating expenses or inventory costs. It is typically used for a period of up to one year, but can be shorter or longer depending on the needs of the business.<\/p>\n

There are a number of different sources of short-term finance, including bank loans, trade credit, and commercial paper. Bank loans are the most common type of short-term finance, and they can be either secured or unsecured. Secured loans are backed by collateral, such as inventory or equipment, while unsecured loans are not. Trade credit is a form of short-term financing that is extended by suppliers to their customers. Commercial paper is a short-term debt instrument that is issued by companies with good credit ratings.<\/p>\n

Short-term finance can be a valuable tool for businesses that need to meet short-term needs. However, it is important to choose the right type of financing and to make sure that the terms of the loan are affordable.<\/p>\n

Here is a brief explanation of each option:<\/p>\n