Can the Payee of a Negotiable Instrument Be a Holder

question 69

Multiple Choice

Can the payee of a negotiable instrument be a holder in due course?

• A) yes, the payee is always a holder in due course
• B) yes, for notes but not for drafts
• C) no, not under any circumstances
• D) usually not, because the payee is usually aware of defenses or irregularities
• E) only if a check is involved

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Definitions:

Controllable Margin

The portion of profit or margin that can be influenced by managing operating costs and expenses.

Operating Data

Information related to the day-to-day functions and performance of a business, used for analysis and decision making.

Contribution Margin

The difference between a company's sales revenue and its variable costs.

Management By Exception

A management strategy where only significant deviations from planned results are addressed, focusing managerial attention on the most important issues.