What Two Characteristics Must a Written Document Have in Order

question 60

Multiple Choice

What two characteristics must a written document have in order to satisfy the requirement that a negotiable instrument be in writing?

• A) (1) relative permanence and (2) a signature by both parties.
• B) (1) a signature at the end by the party to be charged and (2) movability.
• C) (1) relative permanence and (2) acknowledgement.
• D) (1) movability and (2) acknowledgement.
• E) (1) relative permanence and (2) movability.

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Definitions:

Investment Securities

Investment securities are financial instruments that individuals or institutions buy and intend to hold for profit, such as stocks, bonds, or mutual funds.

Current Assets

Current assets refer to all assets that a company expects to convert into cash or use up within one year or one operating cycle, whichever is longer, including cash, inventory, and accounts receivables.

Corporate Form

The organizational structure of businesses incorporated under laws that treat the business as a legal person separate from its owners.

Separate Legal Entity

A legal concept that separates the identity of a corporation or limited liability company from its shareholders or owners, allowing it to own property, sue or be sued, enter contracts, and conduct business in its own name.