What Is the Effect of an Unqualified, Blank Endorsement

question 14

Multiple Choice

What is the effect of an unqualified, blank endorsement?

• A) It turns previous order paper into bearer paper.
• B) It turns previous bearer paper into order paper.
• C) It turns a blank endorsement into a special endorsement.
• D) It turns an allonge into an endorsement.
• E) It turns an endorsement into an allonge.

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Definitions:

Return

The gain or loss made on an investment over a specified period, typically expressed as a percentage of the investment’s initial cost.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses investments to generate earnings growth.

Dividend Growth Rate

The annual percentage rate at which a company's dividend payments to shareholders increase.

Plowing Back

Refers to the strategy of reinvesting profits back into the business instead of distributing them as dividends.