When a Company Discounts a Note Receivable at the Bank,it

question 94

True/False

When a company discounts a note receivable at the bank,it has a contingent liability.

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Definitions:

Sole Proprietorship

A business in which one person (sole proprietor) controls the management and profits.

Entity Partnership

A business structure where two or more entities join together in partnership to conduct business.

Limited Liability Company

A corporate framework that merges the tax benefits of a sole proprietorship or partnership with the protective limited liability found in a corporation.

Sole Proprietor

The single person at the head of a sole proprietorship.