Concept:A promissory note is a written promise to pay a definite sum of money on a specified date.Explanation:The company that issues the note is the maker and must honour its terms.The note is a legally binding financial instrument, not just a statement of intention.On the due date, the company is obligated to redeem the note by paying cash to the holder.The company cannot refuse payment or return the goods instead of paying.Answer:D. Is bound to redeem the note for cash on due date.