The Value of a Factor in Its Best Alternative Use

question 77

Multiple Choice

The value of a factor in its best alternative use is called

• A) alternative value.
• B) transfer earnings.
• C) intrinsic value.
• D) economic profit.
• E) economic earnings.

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Definitions:

Notification of Dishonor

A formal notice given to the parties involved in a negotiable instrument (like a check or promissory note) indicating that payment has failed or been refused.

Drawer Secondarily Liable

The obligation of the drawer of a negotiable instrument, such as a check, to pay if the primary party fails to do so.

Fraudulent Alteration

Altering a document without permission with the goal of misleading or committing fraud.

Promissory Note

A promissory note is a financial instrument in which one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time.