If a Negotiable Order Instrument Is Transferred to Another Party

question 16

Multiple Choice

If a negotiable order instrument is transferred to another party without an indorsement, the instrument has been:

• A) assigned.
• B) negotiated.
• C) obtained by fraud, and is therefore invalid.
• D) obtained by fraud, but may be ratified.

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Definitions:

Corporate Tax Rate

The tax imposed on the net income of a corporation, varying by country and sometimes within jurisdictions of countries.

Dividend-payout Ratio

A financial ratio that shows the percentage of a company's earnings that is paid out to shareholders as dividends.

Anticipated Growth Rate

An expectation of the rate at which a company, asset, or economy will grow in a future period, often used in investment analysis.

Return On Equity

A measure of a corporation's profitability, indicating how much profit a company generates with the money shareholders have invested.