Master Printers,Inc.has a temporary shortfall of cash,but needs to pay its employees tomorrow.What will Master Printers,Inc.,most likely do to obtain the cash?
A)Go to a bank and sign a promissory note for the funds needed
B)Issue commercial paper in hopes that creditors will loan the company the needed funds
C)Offer a 1-day incentive to salespersons in order to increase sales and cash
D)Ask employees to wait until the company has the funds to pay them
E)Borrow money from their line of credit

Question

Quizplus · Accepted Answer

Borrowing money from their line of credit is the best option as it provides immediate access to cash and is a common solution for temporary cash shortfalls. It also allows the company to avoid any penalties or negative consequences from not paying its employees on time. The other options may not provide the necessary funds in time or may have potential negative consequences for the company.