Final answer:
The note matures on April 30 of the following year. In business, a promissory note is a written promise to pay a defined sum of money on demand or at a specified date, often used for short-term financing.
Step-by-step explanation:
The note matures exactly 180 days after November 1 of the current year, which would fall on April 30 of the following year if we consider a non-leap year. A promissory note in business is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date.
Promissory notes are commonly used in business as a means of short-term financing. They are typically issued for periods of less than one year and are a formalized version of an IOU. Notes can be issued by companies as a way to obtain short-term funding for various purposes such as managing cash flow, financing inventory or investments. These notes generally include specific terms regarding the interest rate, maturity date, and any other conditions agreed upon between the issuer and the payee.
One related financial instrument used for borrowing is bonds. When a firm issues bonds, it is effectively dividing the total amount of borrowing into smaller parts, which can be purchased by investors. Each bondholder then receives interest payments over the life of the bond. Should the firm default on its payments, bondholders have some recourse but are not guaranteed full repayment of their investment, as they may only recoup a portion in case the firm's assets are insufficient to cover the debt.
In summary, whereas a bond is typically a long-term investment that includes interest payments over time and has a set maturity date, promissory notes tend to be short-term and can range from unsecured notes with no collateral to secured notes backed by the issuer's assets.