The City Mails Joe Marsh a Refund Check for Overpayment

question 51

Multiple Choice

The City mails Joe Marsh a refund check for overpayment of a parking ticket.Harold Finch steals the check from Marsh's mailbox,signs "Joe Marsh" on the back of the check,and cashes it at a grocery store.Is the grocery store a holder of the check?

• A)Yes,because Finch indorsed the check.
• B)Yes,because it is a holder in due course.
• C)No,because Finch was not a holder and the check was not signed by Marsh.
• D)No,because the check contained no indorsements.

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Definitions:

Break-even Point

The point at which total revenue equals total costs, resulting in no profit or loss for the business.

Sales Mix

The combination of different products or services that a company sells, which impacts the overall profitability.

Contribution Margin Ratio

A ratio that measures the percentage of sales revenue available to cover fixed expenses and generate profit, calculated as the contribution margin divided by sales revenue.

Annual Fixed Expenses

Expenses that do not change in total regardless of changes in the volume of activity or production levels, such as rent or salaries.