Sergio Makes a Gift of a Check to Todd Who

question 60

Multiple Choice

Sergio makes a gift of a check to Todd who takes it in good faith and without notice of any claim, defense, or defect. With respect to this check, Todd is

• A) a defective holder.
• B) an assignee.
• C) an ordinary holder.
• D) an ordinary holder in due course.

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Definitions:

Net Trading Securities

The total value of securities held for trading purposes by a firm, after deducting any liabilities associated with these securities.

Temporary Investments

Short-term investments made by companies to earn a return on idle cash, often maturing in one year or less.

Consolidated Financial Statements

Financial statements resulting from combining parent and subsidiary statements.

Common Stock

Equity securities representing ownership shares in a corporation, providing voting rights and a portion of profits through dividends.