Which of the Following Is True of Warranties by Indorsers

question 3

Multiple Choice

Which of the following is true of warranties by indorsers?

• A)The indorser is not entitled to enforce the instrument.
• B)The indorser warrants that the instrument is subject to a defense of any party that can be asserted against the indorser.
• C)The indorser warrants that he or she has knowledge of the bankruptcy of the maker,acceptor,or drawer.
• D)The indorser warrants that there has been no alteration or other irregularity.

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Definitions:

Turnover

A financial metric indicating the rate at which inventory is sold or the rate at which employees leave and are replaced in a business.

Net Operating Income

The profit a company generates from its operations, excluding taxes and interest, calculated as revenues minus expenses.

Operating Assets

Assets used by a business in its day-to-day operations to generate revenue, excluding investments and non-essential assets.

Return On Investment

An evaluation tool for gauging the productivity or returns of an investment, achieved by dividing the net earnings by the investment's expense.