It Is Used as an Alternative to Bank Borrowing for Large

question 43

Multiple Choice

It is used as an alternative to bank borrowing for large and creditworthy companies,

• A)Commercial bill
• B)Commercial papers
• C)Call money
• D)None of the above

---

Definitions:

Normal Profit

The minimum level of earnings needed for a company to remain in business, often considered as the company's opportunity cost.

Break Even

The juncture where the aggregate of all costs matches the total income, leading to neither a profit nor a loss.

Short Run

A period of time during which at least one of a firm's inputs is fixed.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust all inputs and achieve optimal operation.