The Transfer of Possession (Whether Voluntary or Involuntary)of a Negotiable

question 21

Multiple Choice

The transfer of possession (whether voluntary or involuntary) of a negotiable instrument by a person (other than the issuer) to another person who becomes its holder is known as __.

• A)recoupment
• B)negotiation
• C)indorsement
• D)ratification

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Definitions:

Fixtures

Items of property that are attached to a building or land in a way that makes them a legally part of that property, such as lighting systems or cabinetry.

Par Common Stock

The nominal or face value assigned to a share of common stock in the corporate charter, which may differ from the market value.

Articles of Incorporation

A document filed with a government body to legally document the creation of a corporation, containing essential details about the new entity.

Services

Services are intangible actions or activities that one party provides to another, which do not result in the ownership of anything but can fulfill a need or provide satisfaction.