If a company wishes to finance a printing press with a five-year life,it would be advisable to finance it with a/an:
A) overdraft.
B) bank bill.
C) commercial paper.
D) fully drawn advance.

Question

Quizplus · Accepted Answer

A fully drawn advance is a long-term loan with a fixed interest rate and repayment schedule, making it suitable for financing assets like a printing press with a five-year life. Overdrafts, bank bills, and commercial papers are typically used for shorter-term financing needs.

If a Company Wishes to Finance a Printing Press with a Five-Year