BUS 230 BUS230 Module 8 Homework Assignment (Allied American University)
BUS 230 Module 8 Homework Assignment (Allied American University)
1.A certificate of deposit is the bank’s promise to repay an amount left on deposit for a certain time. When would you use or present a bank with a COD?
2.A promissory note is an instrument by which one person promises to pay a sum of money to another. What makes up a promissory note and how does it differ from a check or draft?
3.“Payable to bearer” are words directing an instrument to be paid to person holding it. What effect does writing this on a check have?
4.An allonge is an attachment to a negotiable instrument on which endorsements are placed. When would an allonge be used or applied in a case?
5.The indorser is one who negotiates an order instrument by endorsement and delivery. Why would someone be an indorser and what liability would they have?
6.A qualified indorsement is an indorsement limiting endorser’s liability. Why would an individual sign as a qualified indorsement?
7.What would their liability be?
8.A notice of dishonor is a notice given to the secondary party orally or in writing that the primary party has refused to pay instrument. Why would a notice of dishonor be given?
9.Presentment is a demand for payment of commercial paper made by the holder. Provide an example of when an individual may use presentment in a claim.
10.A forged check is a check on which drawer’s signature is made without authorization. How do banks handle forged checks?
11.A postdated check is a check dated after its actual date of issue. In what scenario would a bank reject a postdated check?
12.What kind of writing is required for a negotiable instrument?
13.May a maker or acceptor have an option to extend payment without destroying negotiability?
14.What is the significance of an instrument qualifying as a negotiable instrument when it comes to the transferability of the instrument?
15.What are the requirements for a person to become a holder? What about a holder in due course
16.Saxon died April 12. His sister-in-law immediately filed a claim against Saxon's estate for $500, which is the amount of a check issued to her on August 18 (eight months earlier) by Saxon for her services as an accountant. Liability was denied by the person in charge of Saxon's estate, who claimed that because the more than six months old, it was void. Does a check become void because the payee failed to cash it within a six-month period?
Module 8 Journal Assignment
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