Jones,a Purchasing Manager at the XYZ Corporation,has Authority to Make

question 35

Essay

Jones,a purchasing manager at the XYZ Corporation,has authority to make and sign checks drawn on the corporation's account.Jones completes a fake check to the Smith Supply Company for $100,000,signs it for XYZ,indorses it in Smith's name,and sells it to Hirsch,who takes it in good faith.Has the check been negotiated to Hirsch? Assume that the check is a negotiable instrument.

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Definitions:

Break-Even Point

The financial state where total costs equal total revenues, meaning the business is not making a profit, but it's not losing money either.

Total Fixed Costs

The sum of all business expenses that remain constant regardless of production volume, such as rent, salaries, and insurance.

Variable Costs

Expenses that change in proportion to the activity of a business.

Economic Order Quantity

Orders replacements whenever inventory level falls to a predetermined point.