When an Instrument Is Being Transferred to an Agent or Trustee

question 21

Multiple Choice

When an instrument is being transferred to an agent or trustee for the benefit of either the endorser or a third party, which kind of endorsement is used?

• A) Conditional endorsement.
• B) Trust endorsement.
• C) Endorsement to prohibit further endorsement.
• D) Bearer endorsement.
• E) Conditional bearer endorsement.

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Definitions:

Purpose

The objective or intended outcome that an organization or plan is meant to achieve.

In-process Research and Development

The value of research and development efforts acquired through an acquisition that have not yet reached commercial viability.

Business Combination

A transaction or event in which an acquirer obtains control of one or more businesses.

Acquisition

Acquiring management of a different company through the acquisition of its stocks or possessions.