Which of the Following Statements Is True of Contractual Liability

question 18

Multiple Choice

Which of the following statements is true of contractual liability on negotiable instruments?

• A) It can arise even when a person has not signed the negotiable instrument.
• B) It cannot arise when a person has authorized someone else to sign the negotiable instrument.
• C) It can arise from negligence relating to the issuance.
• D) It cannot arise from improper payment.

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Definitions:

Outside Supplier

An external entity that provides goods or services to a business, often used in the context of manufacturing or production.

Investment Center

A division or unit of a business that is responsible for its own revenues, expenses, and investments, and is evaluated based on its return on investment.

Performance Evaluation

The process of assessing and reviewing an employee's or organization's work performance and outcomes against predefined objectives.