Question : Case Study 23:
GHI Inc. is a technology startup looking to raise funds for its expansion into new markets.
Question :
To raise short-term funds for marketing its products in new markets, which money market instrument might GHI Inc. use?
Option 1: Debenture
Option 2: Call money
Option 3: Corporate bond
Option 4: Commercial paper
Correct Answer: Commercial paper
Solution : The correct answer is (d) Commercial paper
Commercial paper is a short-term debt instrument issued by corporations, typically with maturities ranging from a few days to a year. It is a common choice for businesses seeking short-term funds to finance various operational needs, including marketing initiatives in new markets. Commercial paper provides a cost-effective and efficient way to raise capital for short-term activities, making it suitable for funding marketing efforts in this context.
Question : Case Study 6:
DEF Ltd. is a startup in the fashion industry that wants to raise funds for launching its new line of products.
To raise short-term funds for marketing its new products, which money market instrument might DEF Ltd. consider?
Option 4: Equity share
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