What Is the Effect of the Designation,"Bill Brown,without Recourse

question 18

Multiple Choice

What is the effect of the designation,"Bill Brown,without recourse?"

• A) It has no effect on any subsequent holder.
• B) It has no effect on anyone, including, but not limited to, any subsequent holder.
• C) It means that Bill Brown does not provide any guarantees and that if the instrument is later dishonored, he cannot be held liable.
• D) It means that Bill Brown is providing that any subsequent holder cannot be held liable.
• E) Bill Brown is providing that neither he nor the person who transferred the instrument to him cannot be held further liable to any subsequent holder.

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Definitions:

Merchandising Business

A type of business that purchases goods at wholesale prices and sells the same goods at retail prices to end-users or customers.

Financial Statements

Formal records that outline the financial activities and conditions of a business, organization, or individual, often including the balance sheet, income statement, and cash flow statement.

Service Business

A type of business that provides intangible products or services to customers, rather than physical goods.

Credit Memo

A paper provided by the seller to the buyer, which decreases the total the buyer needs to pay to the seller based on the conditions of a prior bill.