Reesa Mork is a multinational corporation that has good credit ratings. It issues promissory notes to other companies. Based on the given information in the scenario, it appears that Reesa Mork uses _____ as a short-term financing option to other companies.
A) commercial paper
B) factoring
C) line of credit
D) trade credit

Question

Quizplus · Accepted Answer

Reesa Mork, having good credit ratings and issuing promissory notes, is using commercial paper as a short-term financing option. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Reesa Mork Is a Multinational Corporation That Has Good Credit