A Forges His Signature on a Cheque Made in Favour

question 63

Multiple Choice

A forges his signature on a cheque made in favour of B,who then endorses it to the order of C.C then endorses the cheque to the order of D,who has no way of knowing that the cheque has been forged.In this case

• A)D is the holder in due course of the cheque.
• B)D is the payee of the cheque.
• C)D is the endorser of the cheque.
• D)D is not a holder in due course of the cheque.
• E)D is the assignee of the cheque.

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Definitions:

Stock Split

An increase in a firm’s shares outstanding without any change in owner’s equity.

Retained Earnings

Profit that is not distributed to the shareholders but is kept by the company for future investment or to pay off debt.

Dividend Income

Income received from owning shares of a company in the form of dividends.