The Use of Checks in Transactions

question 1

Multiple Choice

The use of checks in transactions

• A)entails lower information costs than the use of currency.
• B)entails fewer steps than settling transactions with currency.
• C)avoids the cost of shipping currency back and forth.
• D)entails lower information and fewer steps than settling transactions with currency.

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Definitions:

Act of Court

A formal decision, order, or judgment handed down by a court of law.

Operation of Law

Changes in legal rights or status that occur automatically due to established legal rules, without the need for action by the parties involved.

Limited Liability

A legal structure for businesses where owners' personal financial liability is restricted to the amount they have invested in the company.

Certificate of Limited Partnership

A legal document filed with a state government to establish the existence of a limited partnership.