Fact Pattern 25-A1 (Questions A5-A8 Apply)

question 7

Multiple Choice

Fact Pattern 25-A1 (Questions A5-A8 apply)
Rollo obtains a check payable to his order from Simone.Rollo signs the back and gives the check to Trey.Trey writes "Pay to Trey" above Rollo's signature.
-Refer to Fact Pattern 25-A1.By writing "Pay to Trey" above Rollo's signature,Trey

• A)avoids the risk of loss from theft of the instrument.
• B)relieves himself from liability on the instrument.
• C)converts the check into a nonnegotiable instrument.
• D)locks the instrument into the bank collection process.

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Definitions:

Equity

Equity represents the value of ownership interest in a company, calculated as the difference between assets and liabilities.