Which of the Following Statements Is True of Signing a Negotiable

question 38

Multiple Choice

Which of the following statements is true of signing a negotiable instrument?

• A) An instrument in the form of a note must be signed by the payee who accepts the promise of the issuer.
• B) An instrument in the form of a draft must be signed by the person giving the instruction to pay.
• C) An instrument is not considered to be negotiable when the maker signs by writing his name on it.
• D) A person or company cannot authorize an agent to sign instruments for it.

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Definitions:

Experimental Method

A research methodology involving the manipulation of variables to determine cause-and-effect relationships.

Cause-and-effect Conclusions

Deductive reasoning that connects an action or event (the cause) to outcomes or consequences (the effect), establishing a causal relationship.

Descriptive/Correlational Research

A research method that involves observing and describing the behavior of a subject without influencing it in any way, often used to identify patterns or relationships between variables.

Systematically Observes

Methodically and rigorously watching and recording phenomena or behaviors for analysis.