Ahmed Cohen Received a Check for $5,000 for a Used

question 5

Multiple Choice

Ahmed Cohen received a check for $5,000 for a used car he sold.The check did not specify to whom the check was payable.On the back of this check Ahmed wrote,in his handwriting,"Ahmed Cohen." This has the legal effect of:

• A)making this instrument nonnegotiable.
• B)making this instrument void.
• C)making this instrument order paper.
• D)making this instrument bearer paper.

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Definitions:

Capacity

refers to the maximum level of output that a company can sustain to produce goods or services under normal working conditions.

Retention Ratio

This metric indicates the percentage of net income a firm retains to reinvest in its business rather than distributing to shareholders as dividends.

Dividend Payout Ratio

The fraction of earnings a company pays out to its shareholders in the form of dividends.