Soiya Is a Holder in Due Course of a Check

question 42

Multiple Choice

Soiya is a holder in due course of a check.Soiya goes to the drawee bank,Last Chance Bank,to cash the check.What is the liability of Last Chance?

• A) Last Chance Bank is primarily liable on the check.
• B) Last Chance Bank is not primarily liable on the check until it accepts the check.
• C) Last Chance Bank is secondarily liable on the check.
• D) Last Chance Bank is not secondarily liable on the check until it accepts the check.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or volume of output, which includes expenses like raw materials and labor directly involved in production.

Fixed Costs

Expenses that do not change with changes in production level or sales volume.

Controllable Costs

Expenses that can be influenced or managed by a specific manager or department within a company.

Noncontrollable Costs

Costs that cannot be directly controlled or influenced by management decisions in the short term.