Who are the participants involved in a typical Trade Receivable arrangement?
1.Buyer, seller, and bank
2.Buyer, supplier, and government
3.Buyer, lender, and Investors
4.Supplier, bank, and Debtors
5.Seller, government, and Investors
Correct Answer : 1
Solution :
In a typical Trade Receivable arrangement, the participants include the buyer, the seller, and the bank. The seller supplies goods or services to the buyer, creating a receivable, and the bank facilitates financing or discounting of this receivable to provide liquidity to the seller. This structure supports cash flow management, particularly for MSMEs.
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