Joseph Obtains a Draft That States as Follows: "Pay to the Order

question 56

Multiple Choice

Joseph obtains a draft that states as follows: "pay to the order of Joseph Daniels the sum of $1000." Joseph wants to negotiate this instrument to Jack Spratt to pay a debt owing to Jack.To negotiate this instrument,Joseph must

• A)indicate accepted on the draft and then deliver it to Jack.
• B)endorse and deliver the instrument to Jack.
• C)present the instrument to Jack's bank and have it accepted and then transfer it to Jack.
• D)endorse and present the instrument to Jack's bank.
• E)hand over the draft to Jack and get a receipt.

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Definitions:

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a portion of the profits through dividends.

Dividend

A portion of a company's earnings distributed to its shareholders, typically paid regularly (e.g., quarterly).

Convertible Preferred Stock

A type of preferred stock that gives the holder the option to convert the shares into a fixed number of common shares after a predetermined date.

Common Stock

A type of security that signifies part ownership in a corporation, referred to as corporate equity ownership.