To Transfer an Instrument Made "To the Order" of the Payee

question 479

Multiple Choice

To transfer an instrument made "to the order" of the payee, the payee must:

• A) endorse, but not deliver the instrument to a third party
• B) have the instrument rewritten by a district court official
• C) destroy the original instrument
• D) create an addendum to the original instrument
• E) none of the other choices are correct

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Definitions:

Fixed Manufacturing Overhead

The costs associated with manufacturing that do not vary with the level of production output, including rent of the facility and salaries of the staff.

Variable Selling

Costs that vary directly with the level of sales activity, such as commissions or shipping charges.

Administrative Expense

Expenses related to the general operation of a business, such as office supplies, management salaries, and utilities.

Fixed Selling

Costs that remain constant regardless of the volume of goods or services sold.