On April 1 Richard Arranges to Buy a Sixteen-Speed Bike

question 18

Multiple Choice

On April 1 Richard arranges to buy a sixteen-speed bike from his neighbor Phil for $500. Phil agrees to deliver the bike on May 1. Richard writes a draft for $500 payable to Phil on May 1. In this situation, the draft is

• A) a certificate of deposit.
• B) a time draft.
• C) a sight draft.
• D) a promissory note.

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Definitions:

Input-Process-Output Model

A framework used to understand how groups transform inputs (resources, information, etc.) through processes (communication, decision-making) to produce outputs (solutions, decisions).

Social Exchange Theory

A theory suggesting that human relationships are formed based on a subjective cost-benefit analysis and the comparison of alternatives.

Social Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process to maximize benefits and minimize costs.

Positives and Negatives

The favorable and unfavorable aspects or consequences of a situation or action.