Sallyanne is selling merchandise to Jack's Machine Shop. Sallyanne felt secure in receiving payment because she had Jack sign a promissory note. Sallyanne felt secure because a promissory note is
A) an agreement signed by the buyer stating when and how much money will be paid to the seller in return for immediate credit.
B) the requirement for a firm to maintain a certain amount of funds on deposit with the lending bank.
C) a "gentleman's agreement" to pay for products which were shipped on faith that the payment would be forthcoming.
D) the right given to a bank to seize certain assets if payment is not made when due.
E) basically the same thing as a trade acceptance.
Correct Answer:
Verified
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