Use the Information to Answer the Following Question(s)

question 25

Multiple Choice

Use the information to answer the following question(s) .
Cypress Systems Inc., of Florida, agrees to sell specialized hydroponic growing equipment to Landcaster's of Australia. Because the two companies have never done business with each other, Cypress requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Cypress Inc. chooses to discount or sell the banker's acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 16.1. ________ is an unsecured promissory note.

• A) A banker's acceptance
• B) An overdraft
• C) A securitized loan
• D) Commercial paper

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Definitions:

Personal Attribution

The process by which individuals attribute causes to actions or events based on personal characteristics rather than situational factors.

Stable/Permanent

Characteristics or conditions that are constant, unchanging over time, and expected to stay the same indefinitely.

Primary

Pertaining to the first in order, importance, or time.

Secondary

Referring to the second in order, importance, or rank.