Imagine you work for a privately owned company that sells home security systems and is seeking to open new locations in the five fastest growing cities throughout the United States. To succeed, the company plans to invest in a new technological infrastructure. Because the company does not have the required capital on hand to move in this direction, it requires debt financing. The company has worked out an arrangement with a bank.
Because the owner of the company has many questions concerning the use of negotiable instruments, he has hired you to be his accountant.
Your first task is to explain the implications of this financial decision to the owner.
â?¢ Explain the elements of a negotiable instrument.
â?¢ Explain the elements of a negotiable instrument
The first element in a negotiable instrument is that it must be in writing. The second element is it must be an unconditional promise to pay. The third element is that it must involve a specified sum of money. The fourth element is that it must mention the time when the payment is to be made. The fifth element is that the name of the drawee should be ...
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