Question

Advantages of commercial bill

Answer 1

Advantages of Commercial Bills:

• Liquidity
• The certainty of Payment
• Ideal Investment
• Simple Legal Remedy
• High and Quick Yield
• Easy Central Bank Control

Answer 2

Explanation:

Advantages of commercial bill

• 1) It is quick and cost effective way of raising working capital.
• 2) It provides the exit option to the investors to quit the investment.
• 3) They are cheaper than a bank loan.
• 4) As commercial papers are required to be rated, good rating reduces the cost of capital for the company.