Excel Electronics Is Eastern Alberta Accepted a 6-Month Promissory Note

question 75

Multiple Choice

Excel Electronics is Eastern Alberta accepted a 6-month promissory note from a customer for the $3950 balance owed on the purchase of a refrigerator. The note was dated November 8, 2015 and charged interest at 6.99%. The store's proprietor sold the promissory note 38 days later to Standard Union finance company at a price that would yield Standard Union 19% rate of return on its purchase price. What price did Standard Union pay to the proprietor of Excel Electronics?

• A) $4089.94
• B) $4087.67
• C) $3797.12
• D) $3799.22

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Definitions:

Model Business Corporation Act

A comprehensive statute that serves as a guideline for states in the United States to standardize and regulate the formation, operation, and dissolution of corporations.

Maximum Potential

The highest achievable or possible level of performance or success.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from being liable for the company's debts.

Creditor

A person or institution that lends money or extends credit to another party, expecting to be repaid in the future.