Sylvester,acting as a Representative Agent for Jerry,signs a Negotiable Instrument

question 58

Multiple Choice

Sylvester,acting as a representative agent for Jerry,signs a negotiable instrument with the signature-Sylvester,by Jerry,agent.What kind of liability does Sylvester have for this type of signature?

• A) he is not liable to the instrument
• B) he is liable to the payee
• C) he is liable to Jerry
• D) he is liable to the HDC of the instrument

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Definitions:

Common Dividend Payable

is a liability recorded on a company’s balance sheet representing the amount of dividends declared by the board of directors to be paid out to common stockholders.

Stock Dividend

A distribution of a corporation's earnings to its shareholders in the form of additional shares, rather than cash.

Total Equity

The residual interest in the assets of a business after deducting liabilities, representing the shareholders' ownership interest.

Retained Earnings

Retained Earnings are the portion of a business's profits not distributed to shareholders as dividends, but kept in the company to reinvest in the business or pay off debt.