One Advantage of Using Checks to Settle Transactions Is

question 2

Multiple Choice

One advantage of using checks to settle transactions is

• A)they are more difficult to use fraudulently than currency or precious metals are.
• B)there is effectively no cost to using them.
• C)they are as liquid as cash.
• D)there is no information cost involved in accepting them.

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Definitions:

Debt-to-Equity Ratio

A financial metric that shows the comparative ratio of debt to shareholders' equity utilized to fund a company's assets.

Subsidiary Company

A company that is completely or partially owned and wholly controlled by another company, known as the parent company.

Corporation Law

The body of law that governs the formation, operation, and dissolution of corporations, including their rights and obligations.

Sole Shareholder

An individual or entity that owns 100% of the shares of a corporation.