If an Instrument Fails to Qualify as a Negotiable Instrument,it

question 84

True/False

If an instrument fails to qualify as a negotiable instrument,it means that the instrument fails to be an enforceable contract.

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Definitions:

Capital Assets

Long-term tangible or intangible assets owned or controlled by a business that are used to produce goods or services and are not intended for sale in the regular course of business.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is represented by the equity value.

Cost Method

An accounting approach whereby investments are recorded at their original purchase cost, without adjusting for changes in fair value, except for impairments.

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.