Question

Juxipi Inc. is well known for having a stronger credit score than its competitors. That is why, buyers are more willing to buy promissory notes from Juxipi than its competitors. Which of the following short-term financing options is being offered by Juxipi Inc. in the given scenario?

• Commercial paper
Social paper
Residential paper

Answer 1

Commercial paper

Step-by-step explanation:

Commercial paper is an unsecured, short period debt tool that is issued by corporations to finance payroll, accounts payable, inventories and other short term liabilities.

Commercial papers Maturity days is usually within 1-270 days with discount given and also a fixed interest rate.

Answer 2

Commercial paper

Step-by-step explanation:

Commercial paper refers to money-market security(short term) issued/sold by large corporations to raise funds or financial capacity to meet short-term financial obligations (for example, payroll). It takes the form of a promissory note that promises to settle debt obligations to the extent of the face value on the maturity date indicated on the note. Companies with higher credit rating are usually better positioned to sell commercial paper and at reasonable price.