Which of the Following Statements Is CORRECT

question 70

Multiple Choice

Which of the following statements is CORRECT?

• A) Trade credit is provided only to relatively large,strong firms.
• B) Commercial paper is a form of short-term financing that is primarily used by large,strong,financially stable companies.
• C) Short-term debt is favored by firms because,while it is generally more expensive than long-term debt,it exposes the borrowing firm to less risk than long-term debt.
• D) Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate.
• E) Commercial paper is typically offered at a long-term maturity of at least five years.

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Definitions:

Exception

An event that deviates from the expected norm, often requiring special handling or intervention.

Retail Event Collaboration

Partnerships or joint efforts between retailers and other entities to host events that drive traffic, engagement, and sales.

Coordination

The process of organizing activities or operations in a systematic way to ensure smooth functioning and efficiency.

Supply Chain

A system connecting a business with its providers to manufacture and supply a particular item to the ultimate consumer.