If a Negotiable Order Instrument Is Transferred to Another Party

question 45

Multiple Choice

If a negotiable order instrument is transferred to another party without an endorsement, the instrument has been:

• A) assigned.
• B) negotiated.
• C) obtained by fraud, and is therefore invalid.
• D) obtained by fraud, but may be ratified.

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Definitions:

Normal Distribution

A symmetric probability distribution characterized by its bell-shaped curve, where most occurrences take place around the mean.

Firm

A business organization, such as a company or partnership, engaged in commercial, industrial, or professional activities.

Organization

A structured group of individuals working together to achieve common goals.

Poisson Probability Distribution

Describes the probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate.