Juxipi Inc. is well known for having a stronger credit score than its competitors. that is why, buyers are more willing to buy promissory notes from Juxipi than its competitors. Which of the following short-term financing options is being offered by Juxipi Inc. in the given scenario?
A)Short-term bank loans
B)Factoring
C)Trade credit
D)Commercial paper

Question

Quizplus · Accepted Answer

Juxipi Inc. is offering commercial paper as a short-term financing option in the given scenario. The strong credit score of the company is making buyers more willing to buy its promissory notes, which are essentially commercial paper. Commercial paper is a commonly used financing tool for companies with strong credit ratings, as it allows them to access short-term funds at a lower cost compared to other forms of financing.