Martha Draws a Check Payable to the Order of Stella

question 49

Multiple Choice

Martha draws a check payable to the order of Stella. Stella indorses the check to Karen. But Leslie steals the check from Karen, forges Karen's indorsement, and cashes the check at a liquor store. When the forgery is exposed, whom can the liquor store legally recover from?

• A) Martha
• B) Leslie
• C) Karen
• D) Stella

---

Definitions:

Long-Term Solvency

Measures a company's ability to meet its long-term financial obligations and commitments.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings.

Total Debt Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by its total assets.

Current Ratio

A financial metric indicating how capable a company is of meeting its short-term liabilities using its available assets.