A Written Contract Containing an Unconditional Order to Pay a Specific

question 25

Multiple Choice

A written contract containing an unconditional order to pay a specific sum on demand to a specific bearer would most likely be classified as which of the following?

• A) promissory note
• B) cheque
• C) negotiable instrument
• D) bill of exchange

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Definitions:

Corporations

Businesses that are legally recognized as separate entities from their owners, having their rights and liabilities.

Single Taxation

A tax system where income is taxed only once, typically referring to how corporate profits are taxed at either the corporate or shareholder level but not both.

Mutual Agency

A principle in partnerships where each partner has the power to bind the entire partnership to a contract or agreement.

Limited Liability

A principle where a company's shareholders are legally responsible for its debts only to the extent of the amount of capital they invested.