Maria Signs an Instrument Payable to the Order of National

question 44

Multiple Choice

Maria signs an instrument payable to the order of National Loans, Inc., "on or before" June 15. This instrument is

• A) negotiable.
• B) nonnegotiable, because the maker can move up the payment date.
• C) nonnegotiable, because moving up the payment date is optional.
• D) nonnegotiable, because the exact payment date cannot be deter?mined from the face of the instrument.

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Definitions:

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and loan payments.

Annual Fixed Costs

Expenses that do not change over a year regardless of the level of production or sales.

Variable Costs

Costs that vary directly with the level of production or sales, such as materials and labor.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and equipment costs.