Disregarding the Issue of Whether Sophie Properly Performed, Is the Statement

question 25

Multiple Choice

Disregarding the issue of whether Sophie properly performed, is the statement "I, Reza Salehi, promise to pay Sophie Smith or to bearer, the sum of $100 on Monday, July 22, 2016," without a signature anywhere else on the document, sufficient to satisfy the signature requirement of negotiability?

• A) Yes, because it contains an unconditional promise to pay, and in the handwritten promise, the maker wrote his own name.
• B) Yes, it is sufficient regardless of whether it is in handwriting or not because it contains an unconditional promise to pay.
• C) No, because it was not signed at the bottom.
• D) Yes, but only if Reza later signed another document confirming that he meant the handwritten statement to constitute his signature.
• E) No, because it was not signed at the bottom or anywhere else on the document.

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Definitions:

Differential Cost

The disparity in expenses resulting from choosing between two options or changes in the amount of output.

Manufacturing Operations

All processes involved in converting raw materials into finished goods, including assembly, labor, and use of machinery.

Unused Capacity

Refers to the available production or service facility space that is not currently being used to generate revenue or produce goods.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not influence future business decisions.