An instrument, such as a check, drawn payable to an organization
A)can be negotiated by an authorized representative of the entity.
B)must be indorsed with a stamped imprint of the name of the entity.
C)must be converted to a bearer instrument to be negotiated further.
D)is nonnegotiable.

Question

Quizplus · Accepted Answer

A) Instruments payable to an organization can indeed be negotiated by an authorized representative of that entity. This allows for the practical operation of business transactions where checks or other instruments are made payable to companies or other organizations rather than individuals.

An Instrument, Such as a Check, Drawn Payable to an Organization