Author Question: State the purpose of a promissory note. Describe why a supplier would use a promissory note for ... (Read 95 times)

Cooldude101 · **on:** Jul 14, 2018

State the purpose of a promissory note. Describe why a supplier would use a promissory note for short-term financing instead of trade credit.

Question 2

In Herzberg's theory, if satisfiers are missing, the employees will be dissatisfied.

Indicate whether the statement is true or false

Chelseyj.hasty · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

A promissory note is a written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date. The purpose is to attempt to ensure payment through a legally binding and enforceable contract. A promissory note is also a negotiable instrument. Because a promissory note is negotiable, the manufacturer, wholesaler, or company extending credit may be able to discount, or sell, the note to its own bank. Typically, customers are asked to sign a promissory note when a manufacturer or wholesaler is uneasy about extending trade credit to a retailer because a promissory note is both legally enforceable and is more secure.

Answer to Question 2

False