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Business, Loans and Fictitious Payees

            Signature, as defined under the Uniform Commercial Code, is any symbol that is executed or adopted by a party that presents an intention to authenticate writing. When a business accepts a lot of checks or has many agents accepting checks, a signature stamp is normally used to help deter fraud and speed up the check cashing process. When making a signature stamp a business should be sure to include a recognizable yet difficult to duplicate symbol or signature that they'll use to authenticate checks. The stamp should also include the business name since the check is being deposited into the business account. The business should also be sure to have a limited number of agents that are authorized to sign checks to keep the number of people making deposits down to a limit. This is also done to prevent unauthorized endorsements. By doing so the business will ensure that they do not lose any money or cash and checks that they are not supposed to cash (Clarkson, Miller, & Cross. 2012). .
             A fictitious payee is a payee on a negotiable instrument that a drawer has no intention on having an interest in the instrument that is drawn up. A fictitious payee is an entity that does not exist or one that can be identifiable but will not acquire any interest in the instrument drawn up. An innocent holder can hold the maker or even drawer liable on the instrument. A fictitious payee arises when an employee of a company deceives an employer in signing an instrument over to someone that has no right in receiving that payment. Another way a fictitious payee arises is when an agent in the company who is authorized to write checks issues out an instrument on behalf of the company to a party that has no interest in the instrument that was issued. A company should always balance their check books and make sure that whatever they paid for is what they were supposed to pay. A company should also keep track of inventory to make sure they do not purchase unneeded inventory or pay a fake vendor for inventory they never received.


Essays Related to Business, Loans and Fictitious Payees

1. Gross Income

Hybred Method: (small business) inventory is an income producing factor... - There is no liability to make the pmts for any period after the death of the payee. ... Alimony recapture does not apply if the decrease in pmts is due to the death of either spouse or the remarriage of the payee. ... Exceptions and limitations: No interest is imputed on total outstanding gift loans of $10,000 or less between individuals, unless the loan proceeds are used to purchase income-producing property. ... As with gift loans, there is a $10,000 exemption for compensation-related loans and corporati...

  • Word Count: 1743
  • Approx Pages: 7
  • Grade Level: High School

2. Purchasing A Small Business

It is basically taking a loan from a lender and paying it back with interest. It is reliant on the business or individual's ability to pay the loan off. ... With these, a loan is much easier to get. ... Equity financing is not a loan; rather, it is the sale of a part of you business."... Taking a loan from these sources can cause turmoil if the loan cannot be paid back. ...

  • Word Count: 2342
  • Approx Pages: 9
  • Grade Level: High School

3. Credit Risk and Financial Institutions

Introduction A commercial bank is a financial institution that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts, certificates of deposit, credit and debit cards etc. ... A commercial bank's loan portfolio requires careful planning especially as the risk-return profile varies from one loan product to another. ... This suggestion is made given the low risk profile of mortgage loans. ... Credit risk is an inherent risk to the business of credit and lending for many financial institutio...

  • Word Count: 1800
  • Approx Pages: 7
  • Has Bibliography
  • Grade Level: Undergraduate

4. Minimum Wage and Student Loans

This issue actually effects small businesses, as well as single house holds. ... This actually effects the second issue of student loans, because students who want those better paying job positions are stuck with high loan debts, then graduate only to find that someone else is doing the job for a lower pay. ... It will increase due to the fact that FLSA and other state regulations will make it more costly for businesses to hire workers. ... President Obama has also brought the issue of student loans to the table many times. ... The leaders of our country must also take into consideration ever ...

  • Word Count: 986
  • Approx Pages: 4
  • Has Bibliography
  • Grade Level: High School

5. Why Aren't the Banks Getting Loans Instead of Handouts?

Very smart business men and women are looking at the bottom line and asking lots of questions. ... When most business people think of banks, they think of business in a linear fashion. ... The truth of banking, however is that banks are not in business to service accounts. They are in business to loan money. ... Their money is spread into things like the loans on each other's houses and businesses. ...

  • Word Count: 578
  • Approx Pages: 2
  • Grade Level: High School

6. Small Business Financing Options

Bank Loan Financing This is a fixed amount of a business financing for a fixed term with regular repayments based on the loan agreement. ... Most interesting is that the interest on business bank loans is tax-deductible. ... Despite programs like credit enhancement or guaranteed loans, business or business owners that have filed for bankruptcy in the past may find bank loan very difficult to access. ... Most banks still give loan to small business owners without collateral because the Small Business Administration has provisions that will repay banks in case of any default by the business ow...

  • Word Count: 1333
  • Approx Pages: 5
  • Has Bibliography
  • Grade Level: High School

7. Measurements of a Small Business

Abstract The major focus of this study was defining small businesses and determining standards that can be used when establishing a small business. The study was designed to ascertain how to find financial resources for a business, ways to continue a successful business, turning a business into a franchise, and looking at ways to keep a business from failing. ... Small Business Administration. ... In the United States the Small Business Administration establishes small business size standards on an industry-by-industry basis, but usually stipulates a small business as having fewer than 250 w...

  • Word Count: 2644
  • Approx Pages: 11

8. Quebec Business Law

In order to do so the entrepreneurs must find investors, whom will become shareholders or apply for business loans at the bank. ... Both federal and provincial governments offer programs to facilitate access to grants and loans for new or existing businesses in order to help young entrepreneurs. ... Notably, other than bank loans: " crowd funding", angel investors and venture capital firms have been different ways of acquiring desired capital. ... In terms of the liabilities and debts, Mr.X is personally responsible for any loan or debt in the name of his catering company. ... If th...

  • Word Count: 3546
  • Approx Pages: 14
  • Has Bibliography

9. Establishing a small business

This is an essential first step because if you are planning to get an Small Business Administatration (SBA) loan you are required to have a business plan. ... Some are Traditional sources which tend to be Banks, savings and loans, commercial finance companies and the SBA. ... Venture Capital is one type of finance source you mite want to use if it's difficult to get a bank loan. ... A commercial bank mite have more experience and be more familiar in business loans but sometimes not be able to provide you with the loan amount you wish. On the other hand community bank mite not have so muc...

  • Word Count: 1111
  • Approx Pages: 4
  • Has Bibliography
  • Grade Level: High School

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