Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)Unlike long-term debt,because of its short maturity,commercial paper is not rated by credit rating agencies.
• B)The interest on commercial paper is typically paid by selling it at an initial discount.
• C)Commercial paper is short-term,unsecured debt used by large corporations that is usually a cheaper source of funds than a short-term bank loan.
• D)Extending the maturity of commercial paper beyond 270 days triggers a registration requirement with the Securities and Exchange Commission (SEC),which increases issue costs and creates a time delay in the sale of the issue.

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Definitions:

Environmental Impact

The effect or influence of human activities on the natural environment, including both negative and positive consequences.

External Environment

All outside factors and influences that impact the operation and performance of an organization, including economic, technological, sociocultural, and political factors.

Interest Groups

Collections of individuals or organizations that unite to promote and advocate for shared concerns or objectives.

Strategy Formulation

The process of developing a plan or method for achieving an end goal.