Sources of Short-Term Financing


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question 1 of 3

Which of the following is the best explanation of short-term financing?

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1. Why might a business choose trade credit over other forms of short-term financing?

2. Which type of credit involves the bank allowing a borrower to borrow money on an as needed basis up to a preset maximum?

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About This Quiz & Worksheet

This quiz and corresponding worksheet will gauge your understanding of short-term financing. You will be quizzed on short-term credit and examples of short-term financing.

Quiz & Worksheet Goals

Use these assessment tools to review the following topics:

  • Loans on an as needed basis with a preset maximum
  • Credit extended for less than 90-day periods
  • Loans that involve collateral

Skills Practiced

Use this quiz and worksheet to practice the following skills:

  • Information recall - access the knowledge you have gained regarding sources of short-term financing
  • Knowledge application - use your knowledge to identify the best credit source to use for 'wining and dining' prospective clients
  • Reading comprehension - ensure that you draw the most important information from the related business lesson

Additional Learning

For more, review the corresponding lesson titled Sources of Short-Term Financing. This lesson will help you:

  • Define short-term financing
  • Identify characteristics of trade credit
  • Understand the purpose of a line of credit
  • Learn the benefits of short-term bank loans