Which of the following is true regarding liability on negotiable instruments?

A) Makers and acceptors are primarily liable for a negotiable instrument,while drawers and endorsers are secondarily liable
B) Drawers and endorsers are primarily liable for a negotiable instrument,while makers and acceptors are secondarily liable
C) Makers and drawers are primarily liable for a negotiable instrument,while acceptors and endorsers are secondarily liable
D) Acceptors and endorsers are primarily liable for a negotiable instrument,while makers and drawers are secondarily liable
E) Makers,acceptors,drawers,and endorsers are all secondarily liable for a negotiable instrument.

Which of the following is a moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy proceeding?

A) A stop order
B) An automatic stay
C) A temporary injunction
D) A permanent injunction
E) An interlocutory appeal

Claims to Funds.Paul had a great job as a bank executive.Unfortunately,his bank came under scrutiny by federal regulators,and although Paul had done nothing illegal,he ended up being fired.Unfortunately for Paul,he had a number of debts.Among his assets were a house worth $250,000 on which he owed $150,000 to a bank that held a security interest; three vehicles; an expensive watch worth $5,000; and $120,000 in an Individual Retirement Account (IRA) .He owed $900 per month in child support to his ex-wife Suzy and was behind on payments in the amount of $1,800.He also owed $2,000 in wages consisting of four months of back pay to Bob who took care of Paul's landscaping needs and swimming pool care.Unable to find a job and believing that he had no other option,Paul filed for Chapter 7 bankruptcy.All creditors angrily demanded payment from liquidation of Paul's assets.Paul,on the other hand,claims that he needs all the above-mentioned assets and that he should not have to give up anything.Only federal bankruptcy exemptions apply to Paul's case.Which of the following is true regarding Paul's claim to his vehicles?

A) All vehicles will be sold,with the entire proceeds being used to satisfy claims of creditors.
B) All vehicles will remain Paul's property because vehicles are automatically exempt.
C) One vehicle with the least value will remain Paul's property as an exemption,and the others will be sold to satisfy the claims of creditors.
D) An interest in a motor vehicle up to $3,675 is exempt.
E) An interest in a motor vehicle up to $5,000 is exempt.

Which type of party must pay the stated amount of an instrument when it is initially presented for payment?

A) A party who is secondarily liable
B) A drawer or a party who is secondarily liable
C) An endorser
D) A drawer or an endorser
E) A party who is primarily liable

According to the shelter principle,if a holder cannot attain holder-in-due course status,the holder cannot acquire the rights and privileges of a holder in due course even if the item is being transferred from a holder in due course.

Your boss decides that your firm will switch from a restrictive short-term financial policy to a more flexible policy. You should expect to see the firm's current ratio:

A) Rise, due to the higher investment in current assets and the reduced use of short-term financing.
B) Fall, due to the lower investment in current assets and the increased reliance on short-term financing.
C) Rise, due to the lower investment in current assets and the greater use of short-term financing.
D) Fall, due to the higher investment in current assets and the reduced use of short-term financing.
E) To either rise or fall, but the use of short-term debt will increase.

For companies, one of the disadvantages associated with personal selling is

A) cold calling is easier than direct mail advertising.
B) a salesperson often changes the message based on consumers' needs.
C) it is expensive.
D) it can be directed toward those customers with the highest potential.
E) it is structured and finite.