NCERT · Class 11 · Business Studies · Sources of Business FinanceCommercial Paper (CP) is a type of:
Step-by-Step Solution
Commercial paper is an unsecured promissory note issued by highly rated companies to raise short-term funds, typically maturing within 7 days to 1 year.
Detailed Options Breakdown
Option : Long-term security
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 1: Short-term unsecured promissory note (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Fixed asset
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 3: Owner's equity
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
💡 Study Guide: This question tests core syllabus concepts from Sources of Business Finance. For formulas, key summaries, and mock exam reference guides, read the full Sources of Business Finance Revision Notes.