All of the Following Are Correct Concerning Stop Payment Orders

question 8

Multiple Choice

All of the following are correct concerning stop payment orders, except: ______.

• A) a stop payment order may be issued if a payee has failed to perform under a contract.
• B) a stop payment order does not prevent a holder in due course from demanding payment.
• C) a stop payment order is invalid for some forms of checks.
• D) a stop payment order must be in writing to be effective.

---

Definitions:

Income Tax Expense

The cost incurred by individuals or corporations due to income taxes.

Average Effective Tax Rate

The average effective tax rate is the actual percentage of their income that individuals or corporations pay in taxes, after all deductions and credits, across different jurisdictions.

Financial Asset

Any asset that is cash; an equity instrument of another entity; a contractual right to receive cash or another financial asset from another entity, or to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or a contract that may be settled in the entity’s own equity instruments and is a non-derivative for which the entity may be obliged to receive a variable number of the entity’s own equity instruments, or a derivative that may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.

Marketplace Convention

Commonly accepted standards, norms, or practices adopted by a marketplace or industry.