The Transfer of a Negotiable Instrument in Such a Manner

question 21

Multiple Choice

The transfer of a negotiable instrument in such a manner that the transferee becomes a holder is known as:

• A) indorsement
• B) negotiation
• C) assignment
• D) invalidation

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core business operations.

Fixed Costs

Operating expenses of a business that remain constant regardless of the volume of production or sales.

Unit Contribution Margin

The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the selling price per unit minus the variable cost per unit.

Operating Income

Earnings before interest and taxes (EBIT), measuring a company's profit from its operational and regular business activities.