Which of the Following Is False Regarding Means by Which

question 20

Multiple Choice

Which of the following is false regarding means by which an instrument may be cancelled by a person entitled to enforce it?

• A) Consideration is necessary before a cancellation, a form of contractual agreement, is effective.
• B) A party may cancel an instrument by simply writing "paid" on the instrument.
• C) A party may cancel an instrument by intentionally destroying the instrument.
• D) A party may cancel an instrument by intentionally mutilating the instrument.
• E) A party may cancel an instrument by giving the instrument to the obliged party.

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Definitions:

Bottleneck Operations

Stages in the production process that limit the overall output because they have a lower capacity compared to other stages.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Constrained Resources

Resources that limit the company's ability to produce goods or services, often resulting in bottlenecks in the production process.

Opportunity Cost

The benefit, profit, or value of something that must be given up to acquire or achieve something else.