A drawback of commercial paper is that it takes a long time to mature, thus making it a risky asset to hold if the firm is likely to need cash in the near future.

Question

Quizplus · Accepted Answer

A drawback of commercial paper is actually that it typically matures in a short period of time, such as 30 to 270 days, which can make it difficult to manage cash flow if the issuing firm is not able to sell the commercial paper or obtain other financing when it comes due.

A Drawback of Commercial Paper Is That It Takes a Long