Which of the Following Statements About Commercial Paper Is False

question 42

Multiple Choice

Which of the following statements about commercial paper is false?

• A)The law of commercial paper is covered in Article 2 of the UCC.
• B)Commercial paper is a contract for the payment of money.
• C)Commercial paper may serve as a substitute for money payable immediately.
• D)Commercial paper can be used as a means of extending credit.

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability protection of a corporation.

Partnership

An association of two or more persons to carry on a business for profit.

Corporation

A legal entity recognized by law, distinct from its owners, with rights to own property, sue, and be sued.

De Jure Corporation

A corporation that is legally incorporated and recognized by the state as existing in accordance with law.