Which of the Following Is True Regarding Whether an Agent's

question 89

Multiple Choice

Which of the following is true regarding whether an agent's signature may satisfy the requirement of negotiability that the signature of a maker or drawer appear?

• A) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability.
• B) An agent's signature on behalf of his or her principal cannot bind the principal and does not satisfy the signature requirement for negotiability.
• C) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if specific authorization from the principal allowing the agent to act on the specific transaction at issue is attached to the document.
• D) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if the instrument is for an amount over $1,000.
• E) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if the instrument is in an amount of $1,000 or less.

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Definitions:

Phaneritic Texture

A texture of igneous rocks characterized by large, visible crystals, indicative of slow cooling magma.

Trapped Gas

Trapped gas refers to gas that has been contained within another material, such as within rock formations or ice, which can be released under certain conditions.

Andesite

An intermediate-composition igneous rock that is the fine-grained equivalent of diorite; typically gray or greenish-gray, commonly with phenocrysts of cream-colored feldspar or dark amphibole.

Magma Chamber

A reservoir of molten rock beneath the surface of the Earth or a volcano.