To Be Found a Holder in Due Course, a Transferee

question 501

Multiple Choice

To be found a holder in due course, a transferee must:

• A) be in possession of an instrument in the form of either a draft or a check (but not a note) made out "to bearer "
• B) have agreed in writing not to be bound as a contractual assignee
• C) have given value for the negotiable instrument, taken it without knowledge of any defects and in good faith
• D) provided a signed unconditional writing, promising (or ordering to pay), at a specified time in the future and made out "to order" or "to bearer "
• E) all of the other choices are required to be a holder in due course

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Definitions:

Managerial Decision Making

The process by which managers and leaders of an organization make choices and strategies to achieve organizational goals.

Relevant Range

The range of activity over which changes in cost are of interest to management.

Cost Behavior

Cost behavior refers to how different types of production costs change when there is a change in the level of production activity.

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behavior hold true for a given business.