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:

Manager-Managed LLC

A limited liability company where the daily operations are overseen by appointed managers rather than all members.

LLC Members

Individuals or entities that own an interest in a limited liability company and have rights and responsibilities outlined in the LLC's operating agreement.

Limited Liability Company

A corporate framework that merges the direct tax benefits of partnerships or sole proprietorships with the protective limited liability features of a corporation.

Member-Managed

A management structure for an LLC where all members participate in the decision-making processes directly.