Which of the Following Is a Characteristic of a Check

question 17

Multiple Choice

Which of the following is a characteristic of a check?

• A) It always draws its money from a financial institute.
• B) It is created when credit is extended to a buyer by a seller.
• C) It is a two-party instrument.
• D) It is an unconditional written promise to pay.

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Definitions:

Total Cost Function

The mathematical representation that describes how total cost varies with the level of output, encompassing both fixed and variable costs.

Asymmetric Information

A situation where one party in a transaction has more or better information than the other, leading to an imbalance in power and potentially unfair outcomes.

Vertically Integrated

A business model in which a company controls multiple stages of production which would normally be operated by separate companies.

Production Capacities

The maximum output levels that a company or economy can achieve with the current resources and technology.