Negotiable Instruments Function As

question 9

Multiple Choice

Negotiable instruments function as:

• A) substitutes for cash
• B) credit devices
• C) devices for making business deals easier
• D) are subject to Article 3 of the UCC
• E) all of the other choices

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, thus having a claim on part of its assets and earnings.

Legally Liable

Being subject to legal responsibility or obligation, particularly in the context of lawsuits or compensations.

Sole Proprietorship

A business ownership structure where a single individual owns, operates, and is responsible for all aspects of the business.

Personally Liable

The legal responsibility of an individual to compensate for debt or obligation from personal assets, not through corporate or shared assets.