1)
It is quick and cost effective way of raising working capital
. 3) It provides the exit option to the investors to quit the investment. 4) They are cheaper than a bank loan. 5) As commercial papers are required to be rated, good rating reduces the cost of capital for the company.
What are some disadvantages of commercial farming?
One of the disadvantages of commercial farming is that
is leads to the destruction of natural rain forests of a country
. This is because large acreage of forest land have to be cleared and turned into farmlands to cultivate cash crops.
What is the disadvantage of Commercial paper?
The disadvantage of commercial paper is that
the maturity is from 30 days to 270 days
, with most commercial paper having only a 30-day life. The company has to be able to have access to the market to refinance its commercial paper when it becomes due.
What is Commercial paper what are its advantages and disadvantages?
Answer: Commercial paper is
an unsecured promissory note issued by a firm to raise funds for a short period
, varying from 90 days to 364 days. It is issued by one firm to other business firms, insurance companies, pension funds and banks.
What are the advantages and disadvantages of a commercial bank?
- Discounts. Another advantage is commercial banks’ ability to provide low prices. …
- Personal Service Sacrificed. Commercial banks are set up to close thousands of deals every day. …
- More Product Offerings. …
- Credit Tough to Find.
What are the disadvantages of commercial bank?
What are the Drawbacks
? In a word: cost.
Commercial banking
or business accounts are often more expensive than traditional
bank
accounts.
Banks
may charge fees for night deposits, for processing a certain number of checks and for the payroll services.
What is the advantage of commercial bank?
Commercial banks have the
ability to provide customers with low prices
. Like wholesale companies, they buy in bulk and sell at discount. Some discounts they may offer include free checking, no fees when opening savings or checking accounts and having low interest rates on real estate loans.
What is the advantage of commercial farming?
One of the advantages of commercial farming is that it
significantly increases food production, allowing local consumers to buy the same quantity of food for a lower price
. Intensive commercial farming, however, uses various kinds of fertilizers like biochar fertilizer and pesticides, posing a threat to ecosystems.
What is the main purpose of commercial farming?
Commercial farming
mechanizes operations, controls diseases and pests, enabling the farms to produce more
. As a result, commercial farmers increase production, helping increase the national stock of food products.
What are the impacts of commercial farming?
Its systems involve the
consumption of fossil fuels, topsoil, and water
at very unsustainable rates. It has been found to contribute to several forms of environmental degradation, including air and water pollution, depletion of soils, fish die-offs, and diminishing biodiversity.
What are the disadvantages of commercials?
- (1) Adds to Costs:
- (2) Undermines Social Values:
- (3) Confuses the Buyers:
- (4) Encourages Sale of Inferior Products:
- (5) Some Advertisement is in Bad Taste:
What is the advantage of commercial paper?
Advantages of Commercial Paper
Contributes Funds
– It contributes extra funds as the cost of the paper to the issuing company is cheaper than the loans of the commercial bank. Flexible – It has a high liquidity value and flexible maturity range giving it extra flexibility.
What is the commercial paper market?
Commercial paper is
a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations
(for example, payroll) and is backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note.
What are the types of commercial paper?
There are four types of commercial paper:
drafts, checks, notes, and certificates of deposit
.
What are 5 bad things about online banking?
- Ignoring your accounts. Set aside a few minutes each day to monitor the activity in your checking and savings accounts. …
- Having a standard password. …
- Being careless with your phone. …
- Shunning security features. …
- Assuming the worst about online banking.
What are disadvantages of bank?
- Operating expenses.
- Move to offices at certain times.
- Slow processes.
- High commissions.
- Low stimulus to savings.
- Lack of permanent ATM network.
- Limitations in online or virtual banking.
