Question

Supplier credit is typically offered on both physical assets and actual supplies of inventory purchased by a business.

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Answer 1

Supplier credit in a business context allows a company to purchase goods or inventory from a supplier with a deferred payment period. It is a form of trade credit offered to build trust and maintain relationships.

Step-by-step explanation:

In the context of business, supplier credit refers to the practice of allowing a business to purchase goods or inventory from a supplier and delay payment for a specified period of time.

This means that the business can obtain the necessary resources to produce goods or provide services without immediately paying for them. It is a form of trade credit that is often offered by suppliers to build trust and maintain good relationships with their customers.