Fact Pattern 28-1ADollar Value Motors asks Estimable Bank for a loan to increase its vehicle inventory. Estimable requires Flair, Dollar Value's president, sign a personal guaranty to pay the debt if Dollar Value defaults. Meanwhile, to buy a pick-up truck from Dollar Value, Gina asks Harper to co-sign a credit application.Refer to Fact Pattern 28-1A. If Harper signs the application only after language is included that requires Dollar Value to exhaust its legal remedies against Gina before looking to her, then Harper is

A. a surety.
B. a lienor.
C. a guarantor.
D. a creditor.


Answer: C

Business

You might also like to view...

Paired comparison scaling is useful when the number of brands is large, because it requires direct comparison and overt choice

Indicate whether the statement is true or false

Business

The impact of the average error variance of indicators can be understood in terms of communality

Indicate whether the statement is true or false

Business

The cost of repairing damage to a machine during installation is debited to a fixed asset account

Indicate whether the statement is true or false

Business

A general rule for the relationship between operating, investing, and financing cash flows and the financial statements is:  Operating Cash Flows Cause Changes in:Investing Cash Flows Affect:Financing Cash Flows Affect:A)Noncurrent liabilities and stockholder's equityCurrent assets and current liabilitiesNoncurrent assetsB)Noncurrent liabilities and stockholder's equityNoncurrent liabilities and stockholder's equityCurrent assets and current liabilitiesC)Noncurrent assetsCurrent assets and current liabilitiesNoncurrent liabilities and stockholder's equityD)Current assets and current liabilitiesNoncurrent assetsNoncurrent liabilities and stockholder's equity

A. Option A B. Option B C. Option C D. Option D

Business