Which of the Following Is True Regarding Negotiable Instruments as Compared

question 81

Multiple Choice

Which of the following is true regarding negotiable instruments as compared to contracts?

• A) Similar to contracts, negotiable instruments require consideration.
• B) Similar to contracts, negotiable instruments require offer and acceptance; but unlike contracts, negotiable instruments do not require consideration.
• C) A negotiable instrument is a form of a contract and may be referred to as such.
• D) Negotiable instruments lack the requirements of contracts involving consideration, offer, and acceptance.
• E) Negotiable instruments require the same elements as contracts in regard to consideration, offer and acceptance.

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Definitions:

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities.

Annual Dividend

The total dividend payment a shareholder receives from a stock over the course of a year.

Dividends Increasing

A situation where a company's dividend payouts are rising over time, often indicating financial health and profitability.

Cumulative Voting

A voting system in corporate governance that allows shareholders to allocate all their votes to one candidate, enhancing minority shareholders' ability to elect their preferred board member.