Tim Contracts with Home Dairy to Deliver a Bottle of Milk

question 47

Multiple Choice

Tim contracts with Home Dairy to deliver a bottle of milk to Tim's house every day.Home Dairy assigns Tim's contract to Mother Dairy.Tim is notified of the change and continues to get his daily bottle of milk.His contract is now with Mother Dairy.In this instance,Mother Dairy is the:

• A)assignee.
• B)beneficiary.
• C)holder in due course.
• D)assignor.

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Definitions:

Authorized Stock

The total number of shares a corporation is legally allowed to issue, as defined in its articles of incorporation.

Treasury Stock

Shares that were issued by a company and later reacquired. These shares do not pay dividends or have voting rights while held by the company.

Authorized Shares

Authorized shares are the maximum number of shares that a corporation is legally permitted to issue, as specified in its corporate charter.