Correct Answer:
B. Accounts payable
Spontaneous financing refers to funding that arises automatically in the normal course of business operations without explicit negotiation or special arrangements. These sources typically increase or decrease with the level of business activity.
- Accounts payable is the correct answer because it represents credit extended by suppliers for goods or services purchased on credit. As a business grows and purchases more inventory or supplies, its accounts payable naturally increase, providing a source of short-term financing that is 'spontaneous' as it doesn't require a formal loan application or agreement beyond standard trade credit terms.
- Bank loan is incorrect because it requires a formal application, negotiation, and approval process, making it a non-spontaneous, explicitly arranged source of finance.
- Lease financing is incorrect as it involves a specific contract and agreement for the use of an asset, not arising automatically from daily operations.
- Debentures are incorrect because they are long-term debt instruments issued to the public, requiring significant planning, legal formalities, and explicit fundraising efforts, thus not spontaneous.