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George, John, Paul, Ringo, and Brian Are Five Friends from Iowa

question 24

Multiple Choice

George, John, Paul, Ringo, and Brian are five friends from Iowa. George owes John $100, John owes Paul $200, Paul owes Ringo $300, and Ringo owes Brian $400. John and Paul find a check belonging to George. John names himself as the payee on the check, fills in $200 as the amount, and forges George's signature on it. He indorses the check to Paul and asks him to consider his debt repaid, while keeping the knowledge of the forgery to himself. Paul, in turn, indorses the check to Ringo and pays Ringo the remaining $100 in cash. Predictably, Ringo indorses the check to Brian, who presents the check to George's bank and receives payment. Who among the following can the bank recover the money from, once the forgery is detected?

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Definitions:

Position Power

The power or authority attributed to someone based on their office, rank, or role within an organization.

Formal Leadership

Leadership established through an organizational hierarchy or officially sanctioned role.

Coercive Power

A form of power based on the ability to deliver punishments or impose penalties.

Legitimate Power

The authority that a person or position holds within an organization, which is accepted and recognized by others as right and proper.

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