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Oksi-84 [34.3K]
3 years ago
13

Which one of these statements about promissory notes is incorrect? A promissory note is more liquid than an account receivable.

The party making the promise to pay is called the maker. The party to whom payment is to be made is called the payee. A promissory note is not a negotiable instrument.
Business
1 answer:
olga2289 [7]3 years ago
7 0

Answer: A promissary note is not a negotiable instrument.

Explanation:

A promissary note is a financial instrument written by an issuer or maker to a payee promising a definite amount of money at a specified date.

A promissary note can either be negotiable or not. It becomes non-negotiable when certain conditions are met. Some of the conditions include:

1. A specific amount has been agreed upon by both parties

2. There are no conditions to be met before payment can be made.

Therefore, the statement, 'a promissary note is non negotiable' is false

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The capitalized cost is $ 84,667.20

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The cost of $3200 which occurs every 3 years can be converted into a value using factor A/F for one life cycle.

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An efficiency wage is a higher wage paid to reward workers who show greater productivity. Option D is correct.

<h3>What is the Efficiency wage?</h3>

Wages provided to employees over the minimum wage in order to retain a trained and efficient staff are referred to as efficiency wages. Adam Smith defined a type of pay disparity in the 18th century, in which workers in some businesses are paid more than others based on the level of trustworthiness necessary.

Employers establish efficiency salaries above the equilibrium wage rate as an incentive for better employee performance. An efficiency wage is a higher wage provided to employees who are more productive.

Therefore, option D is correct.

Learn more about the efficiency wage, refer to:

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The only product that Caffe Gustoso has is the coffee so the suggestion will be to create a series of entertaining videos to increase the consumer engagement with coffee and to provide information related to its location with the motive to boost online sale.

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