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An Ice Cream Vendor Signs a Franchising Agreement with the Distributor.Under

Question 87

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An ice cream vendor signs a franchising agreement with the distributor.Under the agreement the distributor agrees to provide ice cream stock with a 10% discount on payment within 30 days, and a 20% discount on payment within 10 days.The distributor allows the operator 90 days to pay for the ice cream stock in full.The above serves as an example of:


A) debt financing.
B) capital budgeting.
C) equity financing.
D) trade credit.
E) loan fronting.

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