Question : Case Study 25:
MNO Enterprises is a leading company in the consumer goods sector planning to expand its operations globally.
Question :
To raise short-term funds for marketing its products in international markets, which money market instrument might MNO Enterprises use?
Option 1: Corporate bond
Option 2: Call money
Option 3: Treasury bill
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 international 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: XYZ Ltd. - Raising Finance for Expansion
XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.
Questions : Meaning and Need for Business Finance
Which financial decision involves selecting the appropriate sources of funds for a business?
Option 1: Production planning
Option 2: Marketing strategy
Option 3: Financial planning
Option 4: Human resource management
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