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 Electric
D) A medium-sized advertising agency
E) United Way

Question

Quizplus · Accepted Answer

General Electric is a large, established company with a strong credit rating and would likely have the ability to issue commercial paper, which is a short-term debt instrument typically used by corporations to finance their short-term cash needs. Mike's Pizza Place, a local housing construction company, a medium-sized advertising agency, and United Way are all smaller entities and may not have the necessary creditworthiness to issue commercial paper.

Which of the Following Companies Would Most Likely Be Able