Albee Construction Company, a financially strong corporation that builds roads and bridges, finances its equipment leases by issuing unsecured short-term debt, which is called:

Question

Quizplus · Accepted Answer

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. Albee Construction Company's approach of issuing unsecured short-term debt to finance its equipment leases aligns with the definition of commercial paper.

Albee Construction Company, a Financially Strong Corporation That Builds Roads