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mr_godi [17]
3 years ago
12

Mezzinzi Bank offers loans to companies in the form of bonds. The companies who apply for these loans can repay the amount over

a prolonged period of time. Which of the following financing options is being offered by Mezzinzi Bank in the given scenario?
A. A revolving credit agreement
B. Long-term debt
C. Commercial Paper
D. Trade credit
Business
1 answer:
dmitriy555 [2]3 years ago
3 0

Answer:

B) Long-term debt

Explanation:

Long term debts are loans that are due in more than 1 year, and generally bonds are due in several years.

  • Revolving credit agreements is a revolving line of credit where the client uses the funds only when they need it.
  • Commercial papers are short term promissory notes (due in less than 1 year).
  • Trade credit is usually handed out by a company's vendors where you receive merchandise and pay for it later (usually in a month or two).
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