The correct answer is: B. Bill of Exchange
A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a certain sum of money to or to the order of a specified person, or to bearer.
A cheque is a bill of exchange drawn on a banker and payable on demand.
A promissory note is an unconditional written promise to pay a certain sum of money to or to the order of a specified person, or to bearer, on demand or at a fixed or determinable future time.
Dishonour by non-payment is the failure of the drawee of a bill of exchange to pay the amount due on the bill when it is presented for payment.
Here is a brief explanation of each option:
- Cheque is a bill of exchange drawn on a banker and payable on demand. It is a negotiable instrument, which means that it can be transferred from one person to another by endorsement.
- Bill of Exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a certain sum of money to or to the order of a specified person, or to bearer.
- Promissory Note is an unconditional written promise to pay a certain sum of money to or to the order of a specified person, or to bearer, on demand or at a fixed or determinable future time.
- Dishonour by non-payment is the failure of the drawee of a bill of exchange to pay the amount due on the bill when it is presented for payment.