Working Capital Management Question:
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What are the disadvantages of commercial papers?
Answer:
Disadvantages of commercial papers:
1) It is available only to a few selected blue chip and profitable companies.
2) By issuing commercial paper, the credit available from the banks may get reduced.
3) Issue of commercial paper is very closely regulated by the RBI guidelines.
1) It is available only to a few selected blue chip and profitable companies.
2) By issuing commercial paper, the credit available from the banks may get reduced.
3) Issue of commercial paper is very closely regulated by the RBI guidelines.
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