Which of the Following Is True of a Qualified Indorsement

question 76

Multiple Choice

Which of the following is true of a qualified indorsement?

• A) An instrument containing a qualified indorsement can only be negotiated once.
• B) An indorsement once qualified will protect all subsequent indorsers.
• C) A qualified indorsement protects only the indorser who wrote the indorsement.
• D) A qualified indorsement obligates the indorser to pay in case the maker defaults.

---

Definitions:

Fair Value

The estimated market value of an asset or liability in an arm's length transaction between informed and willing parties.

Investment Income

Income received from the assets invested in, such as dividends, interest, or rental income.

Common Stock

Shares of ownership in a corporation that grant holders voting rights and a share of the company’s profits through dividends.

Long-Term Investment

Investments a company intends to hold for more than one year, typically including stocks, bonds, or real estate.