A Two Party Instrument Stating on Its Face "Pay to the Order

question 57

Multiple Choice

A two party instrument stating on its face "Pay to the order of Tom Smith" is: ​

• A)A promissory note with Tom Smith as the payee.
• B)A quitclaim deed with Tom Smith a grantor
• C)A mortgage with the bank as the beneficiary
• D)A deed of trust with Smith as the beneficiary

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Sale of Assets

The process of selling company properties, plant, and equipment to generate cash.

Bondholder Claims

The rights or entitlements that bondholders have to receive payments of principal and interest, as well as their place in the hierarchy of creditors in the event of a default.

Debt/equity Ratio

A ratio used to determine how much of a company's assets are financed through equity versus debt.