Which of the Following Statements Is True About the Negotiable

question 31

Multiple Choice

Which of the following statements is true about the Negotiable Instruments Law in China?

• A)China's law requires discrepancies between the Chinese characters and the numbers to be resolved in favor of the Chinese characters.
• B)China's law addresses only banks,not individuals,as endorsers.
• C)China's law permits monetary amounts to be written in either Chinese characters or numbers.
• D)The purpose of China's law is to promote free trade.
• E)China's law specifically addresses the use of promissory notes by individuals.

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Definitions:

Financing Policies

Strategies or guidelines that a company follows to decide how to finance its projects, operations, or investments, typically involving decisions between using debt or equity.

Dividend Policy

A company's approach to distributing profits back to its shareholders either in the form of cash payments or additional shares.

Equity Financing

The method of raising capital by selling company shares to investors in return for ownership stakes in the company.

Debt-equity Ratio

A financial ratio that gauges a corporation's leverage by dividing its total obligations by its stockholders' equity.