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TWO DIFFERENT CREDIT SITUATIONS
1. Credit (loans) refers to an agreement in which the lender supplies the borrower
with money, goods or services in return for the promise of future payment.
CASE STUDY - 1.
IN THIS CASE-
1. Salim obtains credit to meet the working capital needs of production.
2. The credit helps him to meet the ongoing expenses of production, completed
production on time, and thereby increase his earnings.
3. Credit therefore plays a vital and positive role in this situation.
CASE STUDY - 2.
