A claim in recoupment:

A. must arise from the transaction that gave rise to the instrument.
B. can make a person a holder in due course even if he knows about it before the negotiation.
C. is actually not an offset to liability, but a defense to an instrument.
D. is a claim of the original payee against the obligor of the instrument.


Answer: A

Business

You might also like to view...

_____________ is the Big Five personality dimension that is important in jobs such as management that require social interaction.

a. Emotional intelligence b. Extraversion c. Openness to experience d. Agreeableness

Business

Which of the following styles of communication focuses on the speaker and relationship of the parties?

A. Individual B. Contextual C. Indigenous D. Personal

Business

The successful plaintiff in a court trial is referred to as a "judgment debtor."

Indicate whether the statement is true or false.

Business

Fongeallaz Corporation's income statement for Year 2 appears below:Income StatementSales (all on account)$1,360,000 Cost of goods sold 870,000 Gross margin 490,000 Operating expenses 416,286 Net operating income 73,714 Interest expense 18,000 Net income before taxes 55,714 Income taxes (30%) 16,714 Net income$  39,000?The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000. The company's return on equity for Year 2 is closest to:

A. 8.93% B. 64.40% C. 4.72% D. 6.75%

Business