BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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bonds.
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commercial paper.
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preferred shares,
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common stocks.
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Detailed explanation-1: -Commercial paper is a short-term, unsecured debt instrument with a duration of 1-270 days. Financial institutions and large corporations are the main issuers of commercial paper because they have high credit ratings. There is trust in the market that they will repay unsecured promissory notes of this nature.
Detailed explanation-2: -Commercial paper is an unsecured, short period debt tool issued by a company, usually for the finance and inventories and temporary liabilities. The maturities in this paper do not last longer than 270 days.
Detailed explanation-3: -Commercial paper, in the global financial market, is an unsecured promissory note with a fixed maturity of rarely more than 270 days.
Detailed explanation-4: -Commercial paper (CP) is a short-term, unsecured promissory note issued by corporations typically used as a source of working capital, receivables financing, and other short-term financing needs. CP has maturities ranging anywhere from 1 to 270 days.
Detailed explanation-5: -Commercial Paper (CP): CP is a note in evidence of the debt obligation of the issuer. On issuing commercial paper the debt obligation is transformed into an instrument. CP is thus an unsecured promissory note privately placed with investors at a discounted rate to face value determined by market forces.