If an Order Instrument Is Transferred Without Indorsement,then the Instrument

question 58

Multiple Choice

If an order instrument is transferred without indorsement,then the instrument:

• A)is deemed to have been negotiated and the bank can qualify as a holder.
• B)has not been negotiated and the transferee cannot qualify as a holder.
• C)is deemed to have been negotiated and the transferee can qualify as a holder.
• D)has been transferred and the bank and the transferee can qualify as a holder.

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Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Working Capital

The balance sheet accounts associated with day-to-day operating activities. Gross working capital is generally defined as current assets and net working capital as current assets minus current liabilities.

Accounts Receivable

Money owed to a company by its customers for goods or services already delivered but not yet paid for.

Inventory

Represents the goods or materials a business holds for the purpose of resale or production.