Karen Writes on a Piece of Paper,"I Owe You $600

question 4

Multiple Choice

Karen writes on a piece of paper,"I owe you $600," signs it,and gives it to Lou.This instrument is

• A)negotiable.
• B)nonnegotiable,because it does not include an express promise to pay.
• C)nonnegotiable,because it does not recite any consideration.
• D)nonnegotiable,because it does not state any conditions to payment.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually in the form of cash or additional shares, from its profits.

Depreciation

This is the systematic allocation of the cost of a tangible asset over its useful life. It reflects the consumption of the asset over time.

Tax Bill

A tax bill is an official statement from a governmental authority specifying the amount of taxes owed by an individual or organization for a certain period.

Net Cash Flow

The amount of cash that is generated or lost by a business in a given period, after accounting for all cash inflows and outflows related to operational, investing, and financing activities.