What Is the Name Given to a Person Who Has

question 62

Multiple Choice

What is the name given to a person who has possession of a negotiable instrument?

• A) holder
• B) drawer
• C) holder in due course
• D) payee

---

Definitions:

Common Stock

Equity shares issued by a corporation as ownership evidence, granting voting rights and a share in the company's profits.

Dividends Payable

Liabilities on a company's balance sheet representing the amount of dividends declared by the board of directors but not yet paid to shareholders.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Retained Earnings

is the portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment or debt payment.