Time Drafts Cannot Be Sold to Investors at a Discount

question 23

True/False

Time drafts cannot be sold to investors at a discount from its face value.

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Definitions:

Agency

A relationship where one party (the agent) is authorized to act for another (the principal) in dealings with third parties.

Voting Trusts

Legal arrangements used to combine the voting power of shareowners by temporarily transferring their shares to a trustee, often used to control corporations.

Direct Suit

A direct suit is a legal action initiated directly by one party against another for the purpose of resolving a dispute or seeking damages.

Revised Act

An updated or amended version of a statute that reflects changes in the law or its interpretation.