Fact Pattern 14-2 (Questions 30-31 Apply)

question 47

Multiple Choice

Fact Pattern 14-2 (Questions 30-31 apply)
Tom draws a check, on his account in State Bank in New York, payable to Digital Media, Inc., in San Francisco. Digital deposits the check in its ac?count at First National Bank.
-Refer to Fact Pattern 14-2. Digital's bank is

• A) the cashing bank.
• B) the depositary bank.
• C) the intermediary bank.
• D) the payor bank.

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Definitions:

Enterprise

describes a large, complex business or organization that engages in commercial, industrial, or professional activities.

Minimizes Profit

A situation or strategy that unintentionally reduces the potential earnings or efficiency of a business operation.

Aggregate Planning

A process by which a company determines optimal levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon.

Capacity

The maximum number of goods a company can produce or the amount of work it can perform in a given time period, under current conditions.