As an alternative to issuing a commercial bill for short-term financing,corporations with an excellent credit standing may:
A) buy commercial paper.
B) issue commercial paper.
C) issue preference shares.
D) issue convertible notes.

Question

Quizplus · Accepted Answer

Corporations with excellent credit standing may issue commercial paper as an alternative to issuing a commercial bill for short-term financing. Commercial paper is a short-term unsecured promissory note that is issued by corporations with excellent credit ratings. It is an efficient and cost-effective way to raise funds quickly for a short period of time.

As an Alternative to Issuing a Commercial Bill for Short-Term