Which of the Following Types of Endorsements Can You Place

question 25

Multiple Choice

Which of the following types of endorsements can you place upon a negotiable instrument without creating any risk of liability for yourself?

• A)identifying endorsement and qualified endorsement
• B)identifying endorsement
• C)accommodation endorsement and identifying endorsement
• D)accommodation endorsement and restrictive endorsement
• E)a restrictive endorsement but not a special endorsement

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Definitions:

Higher Risk

Refers to the increased likelihood of experiencing a loss or encountering a negative outcome in an investment or other business activity.

Hurdle Rate

The minimum acceptable rate of return on an investment that a manager or company would consider in order to pursue the project.

Accounting Rate of Return

A financial ratio that measures the expected profit from an investment compared to its initial cost.

After-Tax Net Income

The profit remaining after all operating expenses, including taxes, have been deducted from total revenue.