Which of the Following Statements Regarding Commercial Paper Is False

question 11

Multiple Choice

Which of the following statements regarding commercial paper is false?

• A) With dealer paper, dealers sell the commercial paper to investors in exchange for a spread (or fee) for their services.
• B) With dealer paper, the spread increases the proceeds that the issuing firm receives, thereby decreasing the effective cost of the paper.
• C) The minimum face value is $25,000, and most commercial paper has a face value of at least $100,000.
• D) With direct paper, the firm sells the security directly to investors.

---

Definitions:

Organizational Culture

The shared values, beliefs, and norms that influence the way members of an organization interact with each other and with stakeholders outside the organization.

Subcultures

Groups within a larger culture that distinguish themselves through a shared set of customs, values, and beliefs.

Line Employees

Workers directly involved in the operations of a business, contributing to the production of goods or services.

Technical and Professional Employees

Workers possessing specialized knowledge, skills, and qualifications in fields such as engineering, IT, law, and medicine.