Formal Authority Refers to a Right to Exercise Power That

question 75

Multiple Choice

 Formal authority refers to a right to exercise power that is derived from a(n)  

• A) official ceremony. 
• B) majority vote. 
• C) consensus. 
• D) popular consensus. 
• E) governmental office.

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Definitions:

Negotiable Instrument

A signed document promising payment to a specified person or the bearer under certain conditions, like checks, drafts, and promissory notes.

Indorser's Liability

The responsibility borne by a person who endorses a negotiable instrument, such as a check, potentially making them liable for its payment.

Presentment

The formal presentation of a financial instrument, such as a check, for payment.

Dishonor

The failure to pay or accept a negotiable instrument that has been properly presented.