Which of the following is not an advantage that promissory notes have over trade credit from the perspective of the seller?
A) Notes are legally binding agreements.
B) Most notes earn interest for the seller.
C) Notes are negotiable instruments.
D) The company extending credit can sell the note and receive the money quickly.
E) The seller may demand payment from the buyer at any time.

Question

Quizplus · Accepted Answer

The ability to demand payment from the buyer at any time is actually an advantage of trade credit over promissory notes from the seller's perspective. With trade credit, the seller can exert more control over when payments are made, whereas with a promissory note, the seller is often locked into a set payment schedule.

Which of the Following Is Not an Advantage That Promissory