The two primary sources for obtaining long-term borrowing from outside the business firm are the issuance of commercial paper and factoring of accounts receivable.

Question

Quizplus · Accepted Answer

While commercial paper and factoring of accounts receivable may be sources for obtaining long-term financing, they are not the primary sources. Typically, bonds and loans from financial institutions are more commonly used for long-term borrowing.

The Two Primary Sources for Obtaining Long-Term Borrowing from Outside