When a Holder Makes a Blank Indorsement of a Negotiable

question 17

Multiple Choice

When a holder makes a blank indorsement of a negotiable instrument that is bearer paper,what legal effect does this have?

• A)There is no effect-bearer paper does not need to be indorsed.
• B)The bearer negotiates it by transfer alone and no further indorsement is necessary for negotiation.
• C)The instrument is no longer negotiable,as it has been altered.
• D)The instrument is converted into order paper.

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Definitions:

Taxable Income

Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Standard Deduction

A fixed amount that taxpayers can subtract from their taxable income, reducing the tax they owe, without itemizing deductions.

Taxable Income

Income subject to taxation, after adjustments, deductions, and exemptions are accounted for.

Itemized Deductions

Expenses listed individually on a tax return that can be subtracted from adjusted gross income to reduce taxable income.