Which of the Following Organizations Would Be Most Likely to Acquire

question 224

Multiple Choice

Which of the following organizations would be most likely to acquire short-term funding by issuing commercial paper?

• A) a well-known, financially stable corporation
• B) a small business that is unable to qualify for loans from commercial banks
• C) a firm with a significant percentage of current assets held as accounts receivable
• D) a company that prefers equity financing to obtain short-term funds

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Definitions:

Second Law

Often referring to the Second Law of Thermodynamics, which states that the total entropy of a closed system can never decrease over time.

Thermodynamics

The branch of physics that deals with the relationships between heat, work, temperature, and energy.

Entropy

A measure of the disorder or randomness in a system, often associated with the Second Law of Thermodynamics, indicating the direction of spontaneous processes.

Energy

The quantitative property that must be transferred to an object in order to perform work on, or to heat, the object.