Business Studies, asked by Gurpindersingh7716, 19 days ago

How does trade credit lead to overtrading

Answers

Answered by minakshikumari378
1

The amount and the time for which a trader (firm) can obtain trade credit depends on his (its) market reputation, financial standing, its previous records, credit worthiness, etc. Since it is easily available, thus it leads to overtrading

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Answered by ayush08cc
1

Answer:

The amount and the time for which a trader (firm) can obtain trade credit depends on his (its) market reputation, financial standing, its previous records, credit worthiness, etc. Since it is easily available, thus it leads to overtrading.

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