The business concerns raise credit to carry out day to day affairs and is called ............., Fill in the blank.
Answers
Answer to the question is Loan.
Organisations need money to carry out their day to day business. Money belonging to the organisation will be in circulation for different reasons and so, in order to meet requirements of their day to day needs, business organisations take loans. Loans are usually taken from banks, which charges a percentage interest to the organisation. The party taking loan is known as ‘Debtor’.
The sentence after filling up the blank is following- The business concern raises credit to carry out day to day affairs and is called loan.
The organisations require money to perform their day to day operation.
The money of any organisation generally circulates due to various reasons.
To manage the expenses of an organisation, it takes loan.
Loans are provided by the banks at a particular interest rate.