Answer: Regular credit lines

## Explanation **Primary sources of liquidity** are typically readily available, low-cost sources of funds that a company can access without disrupting its normal operations. These include: 1. **Regular credit lines** - These are pre-arranged borrowing facilities with banks that provide immediate access to cash when needed. 2. Cash balances 3. Short-term investments 4. Trade credit 5. Accounts receivable collections **Secondary sources of liquidity** involve more drastic measures that may impact the company's long-term operations, such as: - **Sale of operating assets** - This involves selling productive assets that generate revenue, which can harm future operations. - **Renegotiation of supplier contracts** - This involves changing payment terms with suppliers, which may strain relationships. - Debt restructuring - Bankruptcy protection **Why A is correct:** Regular credit lines are a primary source because they provide immediate access to funds without disrupting business operations. **Why B is incorrect:** Sale of operating assets is a secondary source because it involves selling productive assets that generate revenue, potentially harming future operations. **Why C is incorrect:** Renegotiation of supplier contracts is a secondary source because it involves changing payment terms with suppliers, which may strain business relationships and is typically done when primary sources are insufficient.

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