Fact Pattern 27-1B (Questions B6-B7 Apply)

question 10

Multiple Choice

Fact Pattern 27-1B (Questions B6-B7 apply)
Charlton is the maker of a $200,000 promissory note payable to Development & Sales Corporation. Development & Sales indorses the note to Equity Lenders, which in turn indorses it to First Select Investors, which then in?dorses it to Global Bank, the present holder.
-Refer to Fact Pattern 27-1B. Suppose that First Select pays Global Bank on the note. With timely notice to the proper parties, First Select may then collect payment on the note from

• A) Charlton, Development & Sales, or Equity Lenders.
• B) Charlton or Development & Sales only.
• C) Equity Lenders only.
• D) no one.

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Definitions:

Government Regulation

Policies and rules established by government bodies to control and guide the activities of businesses and individuals within the society.

Government Ownership

Refers to assets and enterprises owned by the government or public authorities, intended for public benefit or strategic interests.

Short Run

A timeframe in economics where at least one factor of production is fixed, limiting immediate adjustments to changes in demand or supply.

Barriers To Entry

Economic or legislative obstacles that prevent new competitors from easily entering an industry or area of business.