Direct Connect Company Orders a Quantity of Wire from Electric

question 68

Multiple Choice

Direct Connect Company orders a quantity of wire from Electric Supply Inc. To finance the purchase, Direct signs a note that includes a reference to the parties' contract, a payment schedule, and a security agreement. This note is

• A)negotiable.
• B)nonnegotiable, because it refers to the parties' contract.
• C)nonnegotiable, because it refers to a payment schedule.
• D)nonnegotiable, because it refers to a security agreement.

---

Definitions:

Present Value

The value today of a future sum of money or sequence of cash flows, when discounted by a certain rate of return.