All categories

2 years ago

A promissory note is best described as:_____.

Business

1 answer:

Katarina [22]2 years ago

5 0

A promissory note is best defined as written <u>evidence of debt</u><u>.</u>

A promissory note is an assurance of payment. A promissory note is a type of loan instrument that includes a written pledge from the issuer to the recipient.

Promissory notes come in a number of different forms:

1) Personal Promissory Notes (PPNs) – This type of loan is taken out specifically from relatives or friends. Even though most individuals avoid signing formal paperwork when asking a close friend or relative for a loan, the promissory note shows that the lender has faith and confidence in the borrower's well-being.

2) Commercial: The note is made here when dealing with commercial lenders like banks.

3) Real estate: In terms of the repercussions of nonpayment, this is comparable to commercial notes. The party has the right to detain the property until the debt is paid if the borrower defaults. It carries some risk because all the pertinent information is made public, which may harm the borrower's credit history going forward.

4) Investments: The promissory note may at times be utilized to obtain capital for the company. It is controlled by securities regulations and utilized for security purposes. It contains clauses pertaining to returns on investment.

Learn more about the promissory note

brainly.com/question/25674932

#SPJ4

You might be interested in

Mullineaux Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt

Fittoniya [83]

Answer:

a. Mullineaux's WACC = 0.60*12 + 0.05*5 + 0.35*7*(1 - 0.35)

WACC = 7.2 + 0.25 + 0.35*7*0.65

WACC = 7.2 + 0.25 + 1.5925

WACC = 9.0425%

WACC = 9.04%

b. After tax cost of debt = 7*(1 - 0.35)

After tax cost of debt = 7*0.65

After tax cost of debt = 4.55%

So since after tax cost of debt of 4.55% is less than the preferred cost of 5%, company should use debt in its capital structure.

8 0

3 years ago

Historical data shows that during the recession of 1990–1991, the natural rate of unemployment was about 5.9% while the actual u

zmey [24]

Answer:

a. The actual unemployment rate was higher during the recession of 1990-1991, but cyclical unemployment was higher in 2001.

Explanation:

Unemployment is defined as the number of people in a population that are willing to work and seeking for jobs but do not have employment.

Natural unemployment is defined as the normal process of leaving jobs and getting jobs in a situation when there is full employment.

Cyclical unemployment is created by recessions and booms.

Actual unemployment = Natural rate + Cyclical rate

Cyclical unemployment= Actual rate - Natural rate

In the first economy

Cyclical rate = 7 - 5.9= 1.1%

In the second economy

Cyclical rate= 6 - 4.8= 1.2%

So actual unemployment was 7% in 1990-1991 while in 2001 it was 6%

Cyclical unemployment was 1.1% in 1990-1991, while cyclical unemployment was 1.2%

6 0

4 years ago

Read 2 more answers

Halpert Hardware Pros, an American retail store, buys most of its inventory from Asian countries. Halpert Hardware Pros would be

Naddika [18.5K]

Answer: rose

Explanation: In the given case, Halpert hardware imports from asian countries,that is, they are on the buying side of the transaction. Therefore, if the value of dollar rises in relation to the currencies of countries from which halpert buys than they will be able to purchase more quantity with the same amount of dollars.

8 0

3 years ago

Settings in which development occurs, which are influenced by historical, economic, social, and cultural factors, are called ___

malfutka [58]

Settings in which development occurs, which are influenced by historical, economic, social, and cultural factors, are called <em>context.</em>

<h3>What is development?</h3>

This is the term that is used to refer to all of the processes that are able to create the growth of a person. It has to do with the growth and the progress as well as the effective changes that are known to happen in a particular society.

Hence we can conclude by saying that Settings in which development occurs, which are influenced by historical, economic, social, and cultural factors, are called context.