Question : Case Study 10:
PQR Ltd. is an established company planning to expand its global operations through strategic alliances.
Question :
To fund its strategic alliance efforts, PQR Ltd. is evaluating short-term financing options. Which money market instrument might it use?
Option 1: Commercial paper
Option 2: Equity share
Option 3: Call money
Option 4: Corporate bond
Correct Answer: Commercial paper
Solution : The correct answer is (a) Commercial paper
Commercial paper is a short-term money market instrument used by corporations to raise funds for short-term financing needs. It is an unsecured, short-term debt instrument issued by corporations, including established companies like PQR Ltd., to meet short-term funding requirements. In the context of funding strategic alliance efforts, using commercial paper can provide PQR Ltd. with quick and efficient access to funds in the short term.
To fund its strategic alliance efforts, PQR Ltd. is evaluating short-term
Question : Case Study 22:
DEF Ltd. is a well-established company planning to expand its global operations through acquisitions.
To finance its acquisition plans, DEF Ltd. is evaluating short-term financing
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