Spontaneous and negotiated sources of short term credit

Reference no: EM131336729

1. Define and discuss the function of collateral in short-term credit arrangements.

2. How is the annual financing cost for a short-term financing source calculated? How does the annual financing cost differ from the true annual percentage rate?

3. Explain the difference between spontaneous and negotiated sources of short-term credit.

Reference no: EM131336729

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