The Words "Without Recourse" on an Indorsement Means the Indorser

question 5

Multiple Choice

The words "without recourse" on an indorsement means the indorser is:

• A) liable personally but not other parties.
• B) not liable for any problems associated with the instrument.
• C) not liable if the instrument is dishonored.
• D) liable for only up to fifty per cent of the loss.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and stockholders' equity at a specific point in time.

Net Sales

The revenue from goods or services sold after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Cost of Goods Sold

The specific expenses borne for the production of products a company sells, covering materials and workforce.

Income Tax Expense

The cost associated with taxes on earnings, calculated based on the applicable tax rates and laws.