United Financial Corporation Is a Large, Well­known Company

Multiple Choice

United Financial Corporation is a large, well­known company. Its financial managers project that United Financial will require short­term financing in the near future. They believe that borrowing short­term loans from banks is not a good option as interest rates on these loans are undesirably high. The financing option that the financial managers are most likely to consider is to:

A) establish a line of credit arrangement with their banker.
B) sell some corporate bonds.
C) opt for commercial paper.
D) establish a revolving credit arrangement with their banker.