Which One of the Following Illustrates an Insolvent Situation

question 43

Multiple Choice

Which one of the following illustrates an insolvent situation?

• A)Assets $56,000; annual expenses $60,000
• B)Assets $78,000; net worth $22,000
• C)Liabilities $45,000; net worth $6,000
• D)Assets $40,000; liabilities $45,000
• E)Annual cash inflows $45,000; liabilities $50,000

Identify and differentiate between real and personal defenses applicable to negotiable instruments.

Comprehend the rights and requirements to become a holder in due course.

Recognize the impact of mental incompetence, duress, and fraud on the enforceability of negotiable instruments.

Grasp the concept of presentment and its requirements for negotiable instruments.