In General,the Material Alteration of a Completed Negotiable Instrument

question 37

Multiple Choice

In general,the material alteration of a completed negotiable instrument:

• A) is a complete defense against a holder in due course.
• B) is no defense whatsoever against a holder in due course.
• C) means that a holder in due course can enforce the instrument against the maker,but only according to its original tenor.
• D) means that a holder in due course can enforce the instrument as modified.

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Definitions:

Perfectly Competitive

A perfectly competitive market is an economic theory of a market where all participants are price-takers, and goods are completely homogeneous, ensuring no single buyer or seller has market power.

Economic Profits

The financial gains that are realized when total revenues exceed total costs, including both explicit and implicit costs.

Accounting Profits

The net earnings of a company as calculated by subtracting all explicit costs from total revenues, according to standard accounting practices.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent or salaries.