BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Order Paper
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Negotiable Paper
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Payable at a Definite Time
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Payable on Demand
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Detailed explanation-1: -An order paper, or order instrument, is a negotiable instrument that is payable to a specified person or its assignee. An instrument such as an order paper is negotiable only if it is payable to the order of a specified person; meaning that it must designate an individual’s name to be paid out.
Detailed explanation-2: -Commercial paper is an unsecured form of promissory note that pays a fixed rate of interest. It is typically issued by large banks or corporations to cover short-term receivables and meet short-term financial obligations, such as funding for a new project.
Detailed explanation-3: -Detailed Solution. The correct answer is 1 only. A Commercial Paper (CP) is an unsecured loan raised by firms in money markets through instruments issued in the form of a promissory note.
Detailed explanation-4: -Answer and Explanation: The correct answer is option c. Dealer paper is sold directly to the lender by a finance company.