Which of the Following Is True Regarding How an Accommodation

question 36

Multiple Choice

Which of the following is true regarding how an accommodation party may sign an instrument?

• A) An accommodation party may sign an instrument only as a maker.
• B) An accommodation party may sign an instrument only as a maker or a drawer.
• C) An accommodation party may sign an instrument only as a maker or acceptor.
• D) An accommodation party may sign an instrument only as an endorser or acceptor.
• E) An accommodation party may sign an instrument as a maker, drawer, acceptor, or endorser.

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Definitions:

Decision-making Authority

The power or right vested in individuals or groups to make important decisions regarding policies, practices, or procedures within an organization.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Vertical Division of Labour

The differentiation of job roles based on hierarchical positions within an organization, where tasks are divided according to levels of authority and expertise.

Functional

Related to the natural or intended purpose of something, describing something that is designed to be practical and useful rather than merely attractive.