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.

---

Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Net Income

The amount of profit remaining after all expenses, taxes, and costs have been deducted from total revenue.

Break-even Point

The point at which cost or expenses and revenue are equal, resulting in neither profit nor loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials.