Asked by marbel popoteur on May 08, 2024
Verified
If a negotiable instrument is payable to whomever possesses it,then it is a(n) ________ instrument.
A) demand
B) order
C) conditional
D) bearer
E) unqualified
Bearer Instrument
A type of negotiable financial instrument that entails payment to whoever holds the document, without requiring the transfer to be recorded, distinguishing it from other securities which are registered to specific owners.
Payable
Refers to an amount of money that is owed by a person or company to a creditor, typically categorized in financial statements as current liabilities.
Possesses
The act of having physical control or ownership of something, indicating a legal relationship between a person and the object being possessed.
- Identify the distinctions between order instruments and bearer instruments, along with the processes involved in their negotiation.
Verified Answer
KM
Kelsey MoranMay 15, 2024
Final Answer :
D
Explanation :
According to Uniform Commercial Code Section 3-109(a),negotiable instruments payable to whomever is bearing them are known as bearer instruments.
Learning Objectives
- Identify the distinctions between order instruments and bearer instruments, along with the processes involved in their negotiation.