Which of the Following Is True of Warranties of Indorsers

question 43

Multiple Choice

Which of the following is true of warranties of indorsers?

• A) The indorser is not entitled to enforce the instrument.
• B) The indorser warrants that the instrument is subject to a defense of any party that can be asserted against the indorser.
• C) The indorser warrants that he/she has knowledge of the bankruptcy of the maker, acceptor, or drawer.
• D) The indorser warrants that there has been no alteration or other irregularity.

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Definitions:

Translation Statement

A financial statement that converts the figures from a foreign subsidiary's local currency into the parent company's reporting currency.

Issued Capital

Issued capital refers to the total value of a company's shares that have been issued to shareholders. This capital is a portion of the authorized share capital that the company has decided to sell.

Foreign Currency Transaction

A business deal or operation that involves the exchange of currencies from two different countries.

Australian Dollars

The official currency of Australia, symbolized as AUD.