Gotwing Inc., a multinational company, issues promissory notes to big corporations. As the company has strong credit ratings, it easily finds buyers without having to offer a substantial discount for its debt. Which of the following short-term financing options is being used by Gotwing Inc. in the given scenario?
A) Trade credit
B) Line of credit
C) Commercial paper
D) Factoring

Question

Quizplus · Accepted Answer

Gotwing Inc. is using commercial paper, which is a short-term unsecured promissory note issued by companies with strong credit ratings to raise funds without offering substantial discounts.