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Discussion

Short-term finance is usually for a period ranging up to

  • A.5 months
  • B.10 months
  • C.12 months
  • D.15 months

Answer: C

Short-term finance runs up to twelve months.

It meets working capital needs - stocks, wages, receivables - through cash credit, overdraft and trade credit. Medium-term finance runs one to five years and long-term beyond that.

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