Green Grocer Wholesale,Inc

question 25

Multiple Choice

Green Grocer Wholesale,Inc.received an $850.00 check from Bob for a grocery purchase.The check was from Forest Enterprises to Ana and had been indorsed to Bob who,in turn,indorsed the check to Green.The clerk at Green failed to carefully examine the check,not noticing that the number 5 had been changed to an 8.Green Grocer has:

• A)not taken the instrument in good faith.
• B)taken the instrument in good faith.
• C)not taken the instrument in good faith to $500.
• D)taken the instrument in good faith to $300.

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Definitions:

Unlimited Liability

A legal structure in which the business owners are personally responsible for all of the company's debts and obligations.

General Partnership

A partnership that involves a complete sharing in both the management and the liability of the business.

Limited Liability

A legal structure that limits an owner's loss to the amount invested in a company, protecting personal assets from the company's debts and obligations.