Which of the Following Is Synonymous,in Legal Terms,with the Concept

question 44

Multiple Choice

Which of the following is synonymous,in legal terms,with the concept that liability for payment of a negotiable instrument is independent of the original debtor-creditor relationship?

• A) A negotiable instrument has a life of its own.
• B) Each cheque is valuable evidence of contractual obligations.
• C) There is always good reason for liability to be borne by the other party.
• D) It is convenient and dependable for commerce.

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Definitions:

Free Cash Flow

This represents the amount of cash a company generates from its operations after accounting for capital expenditures, showing the liquidity available for expansion, dividends, or debt repayment.

Capital Expenditures

Expenses incurred by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment, often to improve or maintain their long-term capacity and efficiency.

Net Cash

The amount of cash available after accounting for cash inflows minus cash outflows, reflecting a company's ability to meet its short-term obligations.

Operating Activities

Activities directly related to the principal revenue-generating activities of an organization.