The Outcome of the Game in the Figure Show Predicts

question 119

Multiple Choice

The outcome of the game in the figure show predicts that Nike will earn profits of:

• A) $2 million.
• B) $4 million.
• C) $10 million.
• D) $15 million.

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Definitions:

Fictitious Payee Rule

A legal principle that holds a drawer of a check responsible when funds are obtained by fraud, if the drawer fails to exercise caution in issuing the check.

Immediate Loss

Financial damage or cost incurred directly as a result of an event, action, or decision, without any delay.

Forged Instruments

Documents that are illegally altered or created to deceive or commit fraud.

Presentment Warranty

A guarantee in commercial transactions that all statements and endorsements regarding a negotiable instrument are true.