Asked by Steven Camarena on Jun 03, 2024
Verified
A bank may lend money to a corporation in exchange for the corporation's short-term promissory notes,which are called:
A) shares.
B) commercial paper.
C) debentures.
D) bonds.
Commercial Paper
An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.
Promissory Notes
A monetary tool comprising a formal pledge from one party to compensate another party with a specified amount of money, either upon request or at a predetermined future time.
Short-Term
Relating to or occurring over a brief period of time, typically less than one year.
- Understand the legal frameworks that support corporate financing and identify the differences among them.
Verified Answer
Learning Objectives
- Understand the legal frameworks that support corporate financing and identify the differences among them.
Related questions
Generally,________ Have a Shorter Duration Than Debentures or Bonds
A(n)______ Raises Capital Through Federally Registered and Underwritten Sales of ...
The Priorities of Corporate Security Are Usually ...
The Freestanding Company Limited Is the Owner of a Number ...
It Is Possible to Create a Corporation Without a Government's ...