Question

V. Long Answer Quetions

State the merits and limitations of retained earnings.


State the merits and limitation.
of equity shares.

4. State the merits and limitations of trade credit
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Answer 1

This method of financing creates advantages for you and the vendor, but also generates some disadvantages.

Advantage – Minimal Cash Outlay. ...

Advantage – Discount for Fast Payments. ...

Disadvantage – Fees and Penalties. ...

Disadvantage – Loss of Trade Credit Privileges