Bank overdraft is a good source of finance for _________.

A. Short term

B. Medium term

C. Long term

D. Short and long term

Answer: Option A

Solution(By Examveda Team)

Bank overdraft is a good source of finance for Short term. An overdraft facility allows the business to spend more money than is deposited in the bank account. The amount of the overdraft will rise and fall as funds are deposited and spent from the account.