Question

What is a check made out to one recipient and given in payment to another?

1) Endorsement
2) Transfer
3) Assignment
4) Negotiation

Answer 1

The correct answer is 4) Negotiation. In the context of checks, negotiation refers to endorsing a check made out to one recipient and giving it in payment to another.

Step-by-step explanation:

The correct answer to the question is 4) Negotiation.

In the context of checks, negotiation refers to the act of endorsing a check made out to one recipient and giving it in payment to another. This typically involves the initial recipient signing the back of the check, which is known as endorsing it, and then giving it to another person or entity as payment.

For example, if a check is written to John Doe but he wants to pay Mary Smith, he can endorse the check by signing the back and then give it to Mary as payment. Mary can then deposit or cash the check, completing the negotiation process.