Trade Credit: Advantages & Disadvantages - Quiz & Worksheet


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question 1 of 3

Which of these would be a reason why a supplier would grant trade credit to a retail customer?

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1. Which of these would be a reason why a supplier would not grant trade credit to a retail customer?

2. Which of these would be a reason for a retailer to seek trade credit from a supplier?

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About This Quiz & Worksheet

These study assessments will quiz your understanding of the pros and cons of trade credit. Answer questions on key points such as why trade credit would be offered to a retail customer and one reason it would be denied.

Quiz & Worksheet Goals

The following areas of study will be addressed:

  • A reason for a retailer asking for trade credit from a supplier
  • Cash for inventory instead of trade credit
  • Negative effect of the use of trade credit for both the supplier and retailer

Skills Practiced

  • Distinguishing differences - compare and contrast topics from the lesson, such as the pros and cons of trade credit
  • Making connections - use understanding of how a supplier is connected to a retailer
  • Information recall - access the knowledge you've gained regarding the use of cash instead of credit for the purchase of inventory

Additional Learning

Learn more with the lesson called Trade Credit: Advantages & Disadvantages. These topics will be discussed:

  • Trade credit usage example
  • Analysis of the advantages and disadvantages of trade credit
  • Importance of access to credit for small businesses/retailers