Here is your assignment#2. This is a worded assignment utilizing the concepts in chapter 8. Please review and write your responses to the following questions below. Please be creative in your responses and you can use other sources to write your responses. If you use additional sources, please add a reference page at the end.

1) Under which circumstances would it be advisable to borrow money to take a cash discount?

2) Discuss the relative use of credit between large and small firms. Which group is generally in the net creditor position? Why?

3) Commercial paper may show upon corporate balance sheets as either a current asset or a current liability. Explain this statement.

4) What is an asset-backed public offering?

5) What is the difference between pledging and factoring accounts receivable?

6) What is meant by hedging in the financial futures market to offset interest rate risks?+