Which of the following companies would most likely be able to issue commercial paper?
A) Mike's Pizza Place
B) a local housing construction company
C) General Motors Acceptance Corporation
D) a medium-sized advertising agency
E) United Way

Question

Quizplus · Accepted Answer

General Motors Acceptance Corporation is a subsidiary of General Motors that provides financing and leasing options to GM customers. As a large financial services company, it is likely able to issue commercial paper. Mike's Pizza Place, a local housing construction company, a medium-sized advertising agency, and United Way are unlikely to have the necessary creditworthiness and financial backing to issue commercial paper.

Which of the Following Companies Would Most Likely Be Able