Which of the Following Statements Is Most Correct

question 122

Multiple Choice

Which of the following statements is most correct?

• A) Trade credit is provided to a business only when purchases are made.
• B) Commercial paper is a form of short-term financing that is primarily used by large, financially stable companies.
• C) Short-term debt, while often cheaper than long-term debt, exposes a firm to the potential problems associated with rolling over loans.
• D) Statements b and c are correct.
• E) All of the statements above are correct.

---

Definitions:

Stakeholders

Parties or individuals who have an interest or investment in a particular business or project and can be affected by its outcomes.

Board of Directors

A group of individuals elected by shareholders to oversee the management and major decisions of a corporation.

Local Communities

Groups of people living in the same geographic area, sharing common social ties, and interacting with each other on a daily basis.

Core Values

Essential tenets or guiding precepts that determine how individuals act and behave within a corporate setting.