The maximum maturity days of holding commercial paper are ___________?
Correct answer: B. 270 days
- A. 170 days
- B. 270 days
- C. 120 days
- D. 5 days
Explanation
Commercial paper in the United States traditionally has a maximum maturity of 270 days, allowing it to avoid registration as a long-term security. The shorter periods listed are possible maturities, not the maximum.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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