A promissory note issued by a corporation when it borrows money is a
A) share.
B) corporate bond.
C) corporate dividend.
D) stock.

Question

Quizplus · Accepted Answer

A promissory note issued by a corporation is a type of corporate bond, which represents a debt obligation that the corporation owes to the bondholder. Shares, stocks, and dividends represent ownership in the corporation and do not involve debt obligations.

A Promissory Note Issued by a Corporation When It Borrows