Which of the Following Is True of a Bad-Check Statute

question 6

Multiple Choice

Which of the following is true of a bad-check statute?

• A)The payee does not have the obligation of informing the drawer of the nonpayment of the check.
• B)Bad-check statutes are effectively used as a means of collection.
• C)The payee can prosecute the drawer immediately after being notified of a bad check by the drawee bank.
• D)The drawee bank can prosecute the payee in case of dishonor of a check.

---

Definitions:

Present Value Factors

Factors used to calculate the present value of a future amount of money or stream of cash flows, considering the time value of money.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, reflecting the risk associated with the investment.

Net Cash Flows

The difference between a company's cash inflows and outflows in a given period, indicative of its financial health.

Capital Budgeting

The process of evaluating and selecting long-term investments consistent with the firm's goal of wealth maximization.