What Is the Term Used for a Short-Term, Unsecured Debt

question 6

Multiple Choice

What is the term used for a short-term, unsecured debt sold by a large company to an intermediary, who then resells the debt to investors in return for a fee for his or her services?

• A) commercial paper
• B) direct paper
• C) dealer paper
• D) unsecured paper

---

Definitions:

Transfer Price

The fee applied to goods or services moved between various sections or units of the same enterprise.

Variable Expenses

Expenditures that adjust in relation to the business's operation level or production quantity.

Shipping Costs

The expenses associated with the delivery of goods from a seller to the buyer, which can include packaging, postage, and handling fees.

Residual Income

The income that remains after deducting all required costs of capital from the operating income.