Correct Answer:
D. Bank loan
Short-term financing refers to funds obtained for a period of less than one year to meet working capital needs. The question asks for a "tangible source," which in this context implies a direct, explicit, and often negotiated financial instrument or agreement, rather than an implicit or operational one. A bank loan fits this description as it involves a direct contractual agreement between a borrower and a financial institution for a specific amount of funds, usually with defined terms and interest.
- D: Bank loan is correct. It is a direct, explicit, and often secured (tangible collateral) source of funds from a financial institution.
- A: Commercial paper is an unsecured promissory note issued by corporations to the public. While a direct financial instrument, it\'s an open-market debt issuance, not a "tangible source" in the sense of a direct, negotiated loan from a single entity.
- B: Factoring involves selling accounts receivable to a third party at a discount. It\'s a sale of an asset to accelerate cash flow, not a loan or a direct financing source in the same way.
- C: Accrued expenses are liabilities incurred but not yet paid (e.g., salaries, taxes). They represent an automatic, interest-free source of financing arising from normal operations, but they are implicit and not a "tangible source" from an active financing decision.
Bank loans are a common and direct method for businesses to secure short-term capital.