Which of the Following Is a "Real" Defense That Is

question 5

Multiple Choice

Which of the following is a "real" defense that is good against a holder in due course of a note?

• A) The maker of the note is 15 years old.
• B) The note was procured by the payee's threat to prosecute the maker for drug dealing.
• C) No consideration was given for the note.
• D) The maker was in a seriously delusional state when he completed the note (but had not been declared insane or institutionalized).

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Definitions:

Net Working Capital

Networking capital represents a financial indicator that assesses the capacity of a business to settle its short-term debts using its short-term assets.

Capital Spending

Monies invested by an enterprise in obtaining or upgrading real assets, including estates, manufacturing facilities, or equipment.

Operating Cash Flow

The amount of cash generated by a company's regular business operations, indicating its ability to cover expenses, debt, and investments.

Shareholders' Equity

The net value of a company, calculated by subtracting total liabilities from total assets, which represents the owners' claim after debts have been settled.