Which of the following organizations would be most likely to acquire short-term funding by issuing commercial paper?
A)A small business that is unable to qualify for loans from commercial banks.
B)A firm with a significant percentage of current assets held as accounts receivable.
C)A well-known,financially stable corporation.
D)A company that prefers equity financing to obtain short-term funds.

Question

Quizplus · Accepted Answer

Commercial paper is a short-term unsecured promissory note issued by financially stable corporations to meet short-term funding needs. Small businesses may not qualify for commercial paper, and firms with significant accounts receivable may opt for factoring or asset-based lending instead. A company that prefers equity financing is unlikely to issue commercial paper.

Which of the Following Organizations Would Be Most Likely to Acquire