Delventon Bank offers loans to multinational corporations which can be returned over an extended period along with interest. The bank issues such loans in the form of bonds. Which of the following financing options is being offered by Delventon Bank in the given scenario?
A. Factoring
B. Trade credit
C. Long-term debt
D. Commercial paper

Respuesta :

Answer:

C. Long-term debt

Explanation:

As for the provided information:

Long Term Debt is the debt offered for an extended period, that can be in any form. Whether straight cash form, or in the form of bonds or any kind of instrument.

Factoring refers to discounting and collecting money through factor, who is a kind of agent who collects money from on account customers and then pay to the organization.

Trade credit is the short term credit, which is generally payable in short period and is used for working capital management.

Commercial papers are short term debt options used for inventory, accounts payable, etc: It do not last longer than 270 days.

Thus, correct option is

C. Long-term debt

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