What Is the Effect of Marking a Cheque 'Not Negotiable

question 49

Multiple Choice

What is the effect of marking a cheque 'not negotiable'?

• A)The payment figure on the cheque cannot be altered.
• B)The cheque must be paid into a bank account
• C)A transferee cannot obtain better title than the transferor.
• D)The cheque becomes non-transferable.

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Definitions:

Cannibalization

The situation where a new product eats into the sales of one of the company's existing products, potentially reducing overall sales.

Net Present Value (NPV)

A valuation method used to assess the profitability of an investment by calculating the present value of expected future cash flows minus the initial investment cost.

Externality

A consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices, often considered as either positive or negative.

Capital Cost Allowance (CCA)

A tax deduction available in Canada for depreciable property that can be used to reduce taxable income.