In Distinguishing Between Power and Authority, We Learned That Power

question 5

Multiple Choice

In distinguishing between power and authority, we learned that power is:

• A) vested in people.
• B) possibly exercised upward, downward, and horizontally.
• C) flowing down the vertical hierarchy.
• D) more narrow in scope than authority.

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Definitions:

Order Instrument

A financial instrument that is payable to a specific person or their order, thus requiring endorsement for transfer.

Bearer Instrument

A negotiable financial instrument, such as a check or bond, that entitles the holder in possession to the rights of the instrument, with no need to prove ownership.

Assignee

The party who receives rights or interests in a contract from the assignor.

Holder

An individual or entity that legally possesses a negotiable instrument, such as a check or promissory note, and has the right to enforce its terms.