Which of the Following Is True in the Event an Instrument

question 22

Multiple Choice

Which of the following is true in the event an instrument contains more than one endorsement?

• A) Each endorser is liable for the full amount to the subsequent endorser or to the holder.
• B) Only the last endorser is liable to the holder and no prior endorsers are liable to a subsequent endorser.
• C) Each endorser is liable for the full amount to the subsequent endorser, but only the last endorser is liable to any holder.
• D) The last endorser is liable to the holder, whereas subsequent endorsers are responsible for reimbursing previous endorsers in proportion to the number of endorsers that exist.
• E) Each endorser is liable to the holder in proportion to the number of endorsers.

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Definitions:

Cost of Goods Sold

The immediate expenses connected to the manufacturing of goods a company sells, such as materials and labor.

Corporate Life Cycle

A concept that describes the progression of a company through stages of growth, maturity, and decline or renewal.

Lapse

The expiration or termination of a right, privilege, or policy due to the passage of time or inaction.

Maturity

The date on which a financial obligation, such as a bond or loan, becomes due and is to be paid off.