A company which issues a promissory note in lieu of payment for goods purchased
- Is not bound to renew the note before payment
- Can return the goods purchased and refuse to pay
- Can refuse to pay on due date since it is only a promise
-
Is bound to redeem the note for cash on due date
The correct answer is: D
Explanation
A promissory note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money.
the company is bound to redeem the cash on the due date