Question
Which of the following statements is CORRECT? a. Commercial paper is a form of short-term financing that is primarily used by large, strong, financially stable
Which of the following statements is CORRECT?
a. | Commercial paper is a form of short-term financing that is primarily used by large, strong, financially stable companies. | |
b. | Short-term debt is favored by firms because, while it is generally more expensive than long-term debt, it exposes the borrowing firm to less risk than long-term debt. | |
c. | Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate. | |
d. | Commercial paper is typically offered at a long-term maturity of at least five years. | |
e. | Trade credit is provided only to relatively large, strong firms. |
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