Generally,assuming No Negligence on the Part of the Victim,when an Endorsement

question 70

Multiple Choice

Generally,assuming no negligence on the part of the victim,when an endorsement on a check has been forged and properly reported to the bank,which party is the party ultimately liable for the loss?

• A)The drawer
• B)The first party to accept the forged instrument
• C)The first legitimate endorser of the instrument
• D)The bank of the first party to accept the forged instrument
• E)The bank of the drawer,even if proper notice was given of the forgery

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Definitions:

Probability Distributions

Mathematical functions that describe all the possible values and likelihoods that a random variable can take within a given range.

Cost of Capital

The cost of funds used for financing a business, calculated as the weighted average of debt and equity costs.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the firm's goal of wealth maximization.

Real Option

The ability to take a course of action that under certain circumstances leads to a benefit. The circumstances that make the action desirable are uncertain, and maintaining the ability to take it requires expenditures before that uncertainty is resolved. Hence, bearing the preliminary cost gives one the option of taking an action in the future that may or may not turn out to be desirable.