Which of the Following Statements Best Describes the Effect of a Person

question 25

Multiple Choice

Which of the following statements best describes the effect of a person indorsing a check "without recourse?"

• A) The person coverts the check to bearer paper
• B) Directs payment to a specific person
• C) The person makes no promise or guarantee of payment on dishonor of the instrument
• D) The person has no liability to prior indorsers

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Definitions:

Divestiture

Sale of assets by a company.

Merger

A corporate strategy of combining two or more companies into a single company in order to enhance competitive advantages or expand market share.

Tender Offer

Offer made by a company to the target company’s shareholders specifying a price and the form of payment.

Leverage Buyout

A financial transaction where a company is purchased using a significant amount of borrowed money to meet the acquisition cost.