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The following statements refer to different types of financing arrangements: 1. It is a long-term financing arrangement. 2. It is an agreement between buyers and
The following statements refer to different types of financing arrangements: 1. It is a long-term financing arrangement. 2. It is an agreement between buyers and sellers that allows the exchange of goods and services without the immediate payment of cash on delivery. 3. It is an agreement that allows buyers to have goods and services on credit payment terms with the option to pay the outstanding amount earlier at a discount or later as agreed. 4. It is an agreement between international buyers and sellers to trade based on credit provided by intermediary commercial banks. 5. It is a short-term agreement to finance trade inventory. Which combination of statements BEST refers to trade credit financing? Select one: a. Statements 1 and 3 b. Statements 2 and 3 C. Statements 1 and 2 d. Statements 4 and 5 e. Statements 3 and 4
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