Franklin Corp. sold money orders to drugstores. The money orders contained the words, "Payable to," followed by a blank. Can the money order qualify as a negotiable instrument?
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Yes, the money order can qualify as a negotiable instrument. Under the revised Article 3 of the Uniform Commercial Code, an instrument that otherwise meets the requirements for a negotiable instrument and also meets the definition of a check can be negotiable even if it is not "payable to order." The Uniform Commercial Code treats checks, which are payment instruments, as negotiable instruments whether or not they contain the words "to the order of."
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The components of cost of capital include all of the following except
a. the cost of debt b. the cost of preferred stock c. the cost of common stock and retained earnings d. the minimum rate of return
The materials requisition serves as the source document for debiting the accounts in the materials ledger
Indicate whether the statement is true or false
The Wonder Co manufactures vapourizers. The cap of the Model 400 can be easily removed, and if this is done when the machine is on, the escape of steam can burn a person
For that reason, the company included several warnings in the packaging accompanying the vapourizer, and even had a large and explicit warning right on the machine. Wonder is no longer making the Model 400, and the Model 500 has a safety lock that prevents children from removing the cap. The cost to Wonder of the cap was about 50 cents. The Hendersons' five-year-old removed the cap of the Model 400 vapourizer in his room and was severely burned. The Hendersons sue Wonder. Which of the following is FALSE? A) The defendants satisfied the duty to warn. It is not liable. B) The defendant knew of the dangers of the Model 400 and should have recalled those on the market. C) The defendant was guilty of negligent design. D) Since it was not prohibitively expensive to make a safer product, the defendant should have done so. E) Both A and D
List the three sections of the cash budget
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