The Advantage of a Holder in Due Course Over a Simple

question 58

Multiple Choice

The advantage of a holder in due course over a simple holder of an instrument is that the holder in due course can:

• A) indorse the instrument "without recourse," thus limiting his liability.
• B) transfer the instrument to others, thus using it as a substitute for money.
• C) collect on the instrument, even if it has been forged.
• D) collect on the instrument if the maker or drawer asserts a personal defense.
• E) collect punitive damages from a party who wrongly does not pay a negotiable instrument.

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Definitions:

Hard Rationing

A situation where capital is not available to a company under any circumstances, often due to economic conditions or poor company performance.

Soft Rationing

A situation where a company limits the amount of funding or capital it allocates to new or ongoing projects, often due to internal policy decisions.

Financial Stop-loss

A risk management strategy used to limit or reduce losses in various financial transactions, typically by setting a predetermined exit point for an investment.

Simulation

A method or process for imitating the operation of real-world systems or processes, using models for training, analysis, or prediction.