The requirement that, to be negotiable, an instrument must promise or order payment of a fixed amount of money
a. applies only to principal
b. applies only to interest
c. applies to both principal and interest together
d. applies neither to principal nor interest
The following are requisites in terms of negotiability. Take a look at number 6. That will help you figure your answer - remember that interest is a variable, and is a constantly changing number, it therefore is not fixed.
1. Must be in writing
2. Signed by maker or drawer
3. Promise or order
In an ordinary draft, the requirement is usually satisfied by inserting the drawee's name immediately following the
word ...
Solution Summary
8 Step process to determining if an instrument is negotiable.
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... Revenue before fixed costs 5,600,000 Fixed costs 2,400,000 ... an income tax deduction of the entire lease payment. ... a. Inflation will make the debt payments higher ...
... finance their investment activities by: (A) Making dividend payments. ... (C) Buying back their financial instruments. ... is equal to: (A) Tangible fixed assets plus ...
... of financial instruments with fixed payments, more commonly ... a fixed income (debt) instrument issued for a ... ownership Dilution  Fixed payment of interest ...
