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Slav-nsk [51]
2 years ago
12

Tom was CEO of a company. He stole money from the company by writing a series of checks made out to “Cash” which he deposited in

his own personal account at Bank. (Please do not try this at home.) Of course, he then spent the money. The company sued the Bank to get the money back.
Was the Bank a holder in due course?
Business
1 answer:
xxTIMURxx [149]2 years ago
6 0

In the given case, bank is  not consider as holder in due course because here it will act as intermediary who collected amount from company's account.

<h3>What is holder in due course?</h3>

A holder in due course refers to an individual who have the authority to hold the negotiable instrument in good faith.

This holder in due course will be referred to as the person who have received or given something in exchange for the instrument.

When any individual receives a gift from someone, then it will not be considered as holder in due course because he had not given any value in exchange.

So yes, in this situation when the CEO stole money from the company  by writing a series of checks and withdrawing it in a personal account at the bank. Bank will be not be considered as holder in due course due to intermediary role.

Learn more about holder in due course, here:

brainly.com/question/27778407

#SPJ1

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In a growing number of jurisdictions, when a tenant moves out of leased premises before the term of the lease expires, the landl
Travka [436]

Answer:

To mitigate damages

Explanation:

When a a tenant breaches the terms of a real estate agreement, the landlord must come in to get another tenant to occupy the space.

He is avoiding a situation where the property is to be left unoccupied for a period of time.

Mitigating damages is a way of reducing further loss when one party breaches a contract.

In the given scenario if a tenant moves out of leased premises before the term of the lease expires, the landlord is required to make a reasonable attempt to lease the property to another party.

5 0
3 years ago
Collusion is A. necessary for firms to raise money by borrowing from investors or from banks in order to fund research and devel
grigory [225]

Answer:

The correct answer is the option C: an agreement among firms to charge the same price or otherwise not to compete.

Explanation:

To begin with, the name of <em>"collusion" </em>refers to an economy concept that focus on the situation where two or more companies decide to work together ilegally by taking a same strategy such as pricing the goods with a same amount so in that order the limit or at least intent to restrict the competion so in that way those firms can keep a piece of the market for themselves. It is consider ilegally in the countries because it is an disadvantage for the competition.

4 0
3 years ago
Assume that a certain business has $1,000 worth inventory, $1,000 cash in bank, and $10,000 receivable from customers in three m
Tresset [83]

Answer:

A. $5,000

Explanation:

Plato

8 0
3 years ago
Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided below:
Sunny_sXe [5.5K]

Answer:

PV Index = 1.158

Explanation:

Present value index is the ratio of discounted cash flows of the project divided by initial outlay required for the project thus first we calculate the Present Values for Investment B

Present value factors @ 12% for year 0, 1, 2, 3, 4 respectively.

1

0.893

0.797

0.712

0.636

Net Present Value = -9000 + (5000 * 0.893) + (4000 * 0.797) + (3000 * 0.712) + (1000 * 0.636)

NPV = $1425

Present value Index = NPV / Initial investment = 1425/9000 = 0.158

This can be interpreted as 1 + 0.158 = 1.158,

1 being the initial investment. You can also choose not to subtract the initial outlay when calculating NPV.

Hope that helps.

8 0
3 years ago
Read 2 more answers
A call option has an exercise price of $70 and matures in six months. The current stock price is $71, and the risk-free rate is
zmey [24]

Answer:

=$0.98

Explanation:

GIVEN DATA:

amount to be matures is $70

current stock price is $71

risk free rate 4%

since standard deviation for stock is given as 0 therefore price os stock is remain same i.e. $71

pay off amount is $71 -$70 = $1

maturity period is of 6 month thus amount of call is calculated as

= 1 \times e^{-0.04 \times 0.5}

= 1\times 0.9801

=$0.98

7 0
3 years ago
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