A & D,IncWrote a Negotiable Note Payable to Vicy,Inc

question 2

True/False

A & D,Inc.wrote a negotiable note payable to Vicy,Inc.A & D left the amount of the note blank because it was uncertain as to amount of the applicable tax.Vicy completed the note for $3,000 more than A & D actually owed for the products it purchased.The note was negotiated to a holder in due course.A & D will not have to honor the note as this constituted fraud in the execution.

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Definitions:

Alcohol Tax

A tax imposed on the sale of alcoholic beverages, often used as a means to discourage excessive drinking and to generate government revenue.

Revenue

The total amount of money generated by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Price Inelastic

Describes a situation where the demand for a product does not change significantly when its price changes.

Tax Revenue

The financial earnings governments receive via taxing.