Which of the Following Is Not One of the General

question 21

Multiple Choice

Which of the following is not one of the general purposes of negotiable instruments?

• A) to operate as a substitute for money
• B) to be a record-keeping device
• C) to provide flexible remedies for the non-breaching party in the event of a breach
• D) to facilitate the extension of credit

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Definitions:

Selling Price

The amount of money for which a seller is willing to sell their product or service.

Cost

The amount that is spent to buy or produce something, including the resources and materials used.

Overhead Expenses

Costs associated with running a business that are not directly tied to producing goods or services, such as rent and utilities.

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operations.