Which of the following represents a source of short-term funding?
A)Common stock
B)Corporate bonds
C)Retained earnings
D)Commercial paper

Question

Quizplus · Accepted Answer

Commercial paper is a type of short-term debt instrument that companies can use to raise funds for a period of up to 270 days. It is a common source of short-term funding for corporations. Common stock represents ownership in a company and is not a form of debt financing. Corporate bonds are debt securities with longer-term maturities and are not considered short-term funding. Retained earnings represent profits that a company has accumulated and are not a form of external financing.

Which of the Following Represents a Source of Short-Term Funding