Which of the Following Is True If an Instrument Fails

question 1

Multiple Choice

Which of the following is true if an instrument fails to qualify as a negotiable instrument?

• A) The instrument by definition fails to be a good contract.
• B) Failure to qualify as a negotiable instrument does not mean the instrument fails to be a good contract.
• C) The instrument by definition is a good contract.
• D) The instrument by definition is a good contract only if it is made out in an amount less than $1,000.
• E) The instrument by definition is a good contract only if it is made out in an amount more than $1,000.

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Definitions:

Return on Equity

A financial ratio that measures the profitability of a business in relation to shareholders' equity.

Profit Margin

A financial ratio that shows the percentage of revenue remaining after all operating expenses, interest, taxes, and dividends have been deducted.

Return on Assets

A financial ratio indicating how efficiently a company is using its assets to generate earnings.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, measuring the efficiency of asset use in generating profit.