Bus_71_Homework_3_ID-C_chap_14_16-20_6x25_wo_Ans - Business...

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Business 71 Homework Questions Chapters 14, 16-20, (6 x 25 random) ID: C Read the question and all of the answers carefully. Locate the best support in the text and note that reference, you may need it later. Identify the letter choice that best completes the statement or answers the question. Indicate your choice in the space provided to the left of the question number. Enter this letter next to the corresponding question on the Scantron in pencil. ____ 1. Rita owes $6,000 in unpaid taxes. In the sand of Seaside Beach, she executes an instrument for that amount that otherwise meets the requirements for negotiability. This instrument is likely a. negotiable. b. nonnegotiable, because an instrument must be on paper. c. nonnegotiable, because sand is not sufficiently permanent. d. nonnegotiable, because the government does not appreciate it. ____ 2. To borrow money to finance the start-up of his business, Bob executes an instrument in favor of City Bank. For the instrument to be negotiable, the signature a. can be anywhere on the instrument. b. must be anywhere on the lower half of the instrument only. c. must be in the lower left -hand corner of the instrument only. d. must be in the lower right -hand corner of the instrument only. ____ 3. Kelly signs an instrument in favor of Leo that states it is " subject to a certain agreement between Kelly and Mona." This instrument is a. negotiable. b. nonnegotiable, because it is made subject to a separate agreement. c. nonnegotiable, because it refers to a separate agreement. d. nonnegotiable, because Kelly and Mona are not the same persons. ____ 4. Maria signs an instrument payable to the order of National Loans, Inc., "on or before" June 15. This instrument is a. negotiable. b. nonnegotiable, because the maker can move up the payment date. c. nonnegotiable, because moving up the payment date is optional. d. nonnegotiable, because the exact payment date cannot be determined from the face of the instrument. ____ 5. Julie signs a check payable to the order of Kwik-Mart Stores, Inc., that does not include a date. This check is a. negotiable. b. nonnegotiable, because it does not include a date. c. nonnegotiable, because it is payable to Kwik-Mart. d. nonnegotiable, because it is signed by Julie. ____ 6. To obtain office supplies for All-Care Auto Clinic, Britney executes a draft in favor of Chris. A draft is a. a conditional promise to pay money. b. an unconditional written order to pay money. c. a qualified promise to set aside a sum of money. d. a restricted promise to deliver goods at a future date. ____ 7. Alpha Company issues a trade acceptance with itself and Beta Company as parties. A trade acceptance is a. a draft. b.
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