Which of the Following Is True About the Surety's Liability

question 37

Multiple Choice

Which of the following is true about the surety's liability to pay in a surety arrangement?

• A)The surety is secondarily liable for payment.
• B)The surety is primarily liable for payment.
• C)The principal debtor must be in default before the surety can be approached.
• D)The surety can only be approached as a last resort to the creditor.

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Definitions:

Cooperative

Willingness to work jointly with others towards a common goal, often characterized by mutual help and teamwork.

Unassertive

Characterized by a lack of assertiveness; often relating to someone who is hesitant to express their opinions or needs assertively.

Structural Differentiation

Structural differentiation is the process through which an organization becomes more complex by dividing and specializing its functions and roles.

Role Ambiguities

The uncertainty or lack of clarity about the expectations, responsibilities, or duties associated with a particular role.