Which of the Following Is Not Typically a Characteristic of Commercial

question 49

Multiple Choice

Which of the following is not typically a characteristic of commercial paper borrowing?

• A)maturity is short-term
• B)banks are not the lenders
• C)the loans are secured.
• D)borrowers have high credit quality

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Definitions:

Transfer of Ownership

The act of passing the legal title of an asset from one entity or individual to another.

Economic Life

The estimated period over which an asset is expected to be economically useful to the owner.

Sales-Type Lease

A lease agreement where the lessor recognizes profit or loss upfront due to the difference between the fair value of the asset and its carrying amount.