Which of the Following Is Incorrect in Relation to Bill

question 48

Multiple Choice

Which of the following is incorrect in relation to bill financing?

• A) The drawer is the party seeking the funds.
• B) If a bank accepts the bill this enhances its credit quality.
• C) An issuer will seek to sell the bill in the market at the highest yield.
• D) Bills are sold at a discount to face value.

Recognize the legal responsibilities and liabilities of authorized agents, accommodation parties, and indorsers in the context of negotiable instruments.

Identify the steps an individual must take to avoid personal liability when acting as an agent.

Comprehend the circumstances under which a person is discharged from liability on a negotiable instrument.

Understand the process and implications of alteration and forgery in negotiable instruments.

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Extraordinary Gain

Income from events that are both unusual in nature and infrequent in occurrence, excluded from regular business operations when assessing profitability.

Note Receivable

A financial claim against another party that is evidenced by a written promise to pay a specified sum of money on demand or at a set time.

Impairment

A decrease in the recoverable value of an asset below its carrying amount on the balance sheet, leading to an adjustment of the book value.