Asked by Ogechi Enweremadu on Jun 04, 2024
Verified
Which of the following is not true regarding a promissory note?
A) Promissory notes may not be transferred to another party by endorsement.
B) Promissory notes may be sold to another party.
C) Promissory notes give a stronger legal claim to the holder than accounts receivable.
D) Promissory notes may be bearer notes and not specifically identify the payee by name.
Promissory Notes
Written promises to pay a specified sum of money to a certain person or entity at a defined time or on demand.
Legal Claim
A demand for compensation, payment, or property by a person or entity asserting a right against another in a court of law.
- Grasp the nature and negotiability of promissory notes.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
A
Explanation :
Promissory notes can be transferred to another party by endorsement.
Learning Objectives
- Grasp the nature and negotiability of promissory notes.