Asked by jessica tudosa on Jul 02, 2024

Maya Efrat,Chief Financial Officer for BAZ Inc. ,is authorized to sign checks for BAZ.She signs a check "BAZ Inc.by Efrat,Chief Financial Officer." Which of the following statements is most accurate?

A) Maya and not BAZ Inc.is liable on the check.
B) BAZ Inc.and not Maya is liable on the check.
C) Both BAZ Inc.and Maya are liable on the check.
D) Neither BAZ Inc.nor Maya are liable on the check.

Authorized

Authorized means having the official permission or approval to do something, especially in a legal or business context.

Liable

Legally responsible or obligated to make restitution or compensation for harm or breach.

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company, including financial planning and record-keeping, as well as financial reporting to higher management.

  • Familiarize oneself with the functions and legal responsibilities of individuals involved with negotiable instruments, encompassing the drawer, drawee, and indorser.
  • Understand the importance of representation and individual accountability in transactions that involve negotiable instruments.