If the Instrument Is Order Paper, How Can a Person

question 39

Multiple Choice

If the instrument is order paper, how can a person become a holder?

• A) Transfer of its possession.
• B) Its indorsement by the appropriate parties.
• C) Both a t ransfer of its possession  and it s indorsement by the appropriate parties  are necessary.
• D) None of these.

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Definitions:

Stock Market

A marketplace where securities, such as stocks and bonds, are bought and sold.

Average Collection Period

The mean period it takes for an enterprise to collect payments due from its clients.

Financial Statements

Official records that detail a company’s financial activities and condition, including balance sheet, income statement, and cash flow statement.

Stock Market

A marketplace where stocks (shares in corporations) are bought and sold, providing companies with access to capital and investors with a slice of ownership and potential profits.