Final answer:
Commercial Paper is likely the least expensive and least risky short-term financing option for Boeing to finance its accounts receivable, due to lower interest rates and administrative costs compared to other avenues such as Bank Loans or Venture Capital.
Step-by-step explanation:
If Boeing needed a short-term loan over $100,000 to finance its accounts receivable, the least expensive option that involves the least risk would most likely be Commercial Paper. As a large and well-known firm, Boeing can benefit from issuing commercial paper, which is an unsecured form of promissory note that is typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities. Options like Trade Credit may not be suitable for a sum as large as $100,000, and Bank Loans may be more expensive due to higher interest rates. Furthermore, Venture Capital is generally not used for short-term financing and involves giving up equity in the company, which Boeing may not find desirable for financing accounts receivable. Commercial paper is often a less expensive avenue for finance for firms like Boeing because it does not require the same level of administrative fees and offers lower interest rates compared to bank loans. Moreover, it is normally issued at a discount, and the firm repays the face amount upon maturity. It is less risky because it is a short-term obligation, and being a highly rated company, Boeing can likely issue commercial paper at very competitive rates.