Which of the Following Statements Is CORRECT

question 116

Multiple Choice

Which of the following statements is CORRECT?

• A) commercial paper is a form of short-term financing that is primarily used by large, strong, financially stable companies.
• B) 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.
• C) commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate.
• D) commercial paper is typically offered at a long-term maturity of at least five years.
• E) trade credit is provided only to relatively large, strong firms.

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Definitions:

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Amniotic Sac

A fluid-filled sac that surrounds and protects the embryo and fetus during pregnancy, providing a safe environment for development.

Drive-Reduction Theory

A theory of motivation that posits that humans are driven to reduce internal states of tension and return to a state of homeostasis.

Primary Drive

Basic, innate drives that motivate behavior necessary for survival, such as hunger, thirst, and the need for warmth.