The Rationale for the Fictitious Payee Rule Is That

question 66

Multiple Choice

The rationale for the fictitious payee rule is that:

• A)the bank should bear the immediate loss of the forged instruments.
• B)the holder in due course should bear the immediate loss of the forged instruments.
• C)the employer of the wrongdoer should bear the immediate loss of forged instruments.
• D)the wrongdoer should bear the immediate loss of the forged instruments.

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Definitions:

Lower Control Limit

The lower control limit is the lower threshold on a control chart in statistical process control, beneath which the process variability is considered to be in a state of control.

P Chart

A type of control chart used to monitor the proportion of nonconforming units in a manufacturing or business process.

Sample Proportion

The fraction of the sample that exhibits a particular attribute or characteristic, often used in survey data.

Defective Units

Items or products in a batch or production run that fail to meet quality standards or specifications.