A clothing store has opened a credit account in which Judy, a college student, gets Alice, her older sister, to agree to pay the amount owed on the account if Judy fails to do so. Which of the following statements is true of this scenario?

A. Alice is the guarantor, and Alice's contract must be in writing to be enforceable.
B. Alice is the guarantor, and she is primarily liable to make the payments.
C. Judy is the obligor, and she is contractually liable to the guarantor.
D. Judy is the obligor, and she is secondarily liable to the clothing store.


Answer: A

Business

You might also like to view...

If the balance of accounts receivable decreases during the year, then cash collections will ____________________________ sales on account for the period

Fill in the blank(s) with correct word

Business

Which of the following is an example of a good practice when sending a good-news message??

A) ?Dave, a manager at Wizzware Inc., organizes his message such that the main idea is presented at the end. B) ?Ava, a manager at Auroville Inc., conveys positive news to her employees using a direct approach. C) ?Sameer, a manager at GreenMove Inc., ensures that he does not stress on the main idea of his message. D) ?Zaiba, a manager at BayWave Corp., delivers positive news to her employees without providing additional details.

Business

An example of a dependent demand item would be?

a. Bicycle seat b. Bicycle c. Both a bicycle seat and a bicycle d. Neither a bicycle seat nor a bicycle

Business

Highly volatile inflation rates and earning rates make goal planning a useless activity

Indicate whether the statement is true or false.

Business