In a Creditor Beneficiary Situation,who Are the Parties to the Contract

question 101

Multiple Choice

In a creditor beneficiary situation,who are the parties to the contract that creates the creditor-beneficiary relations?

• A) the original debtor and the second-hand purchaser of the item connected with the debt
• B) the original creditor and the second creditor
• C) the original creditor and the original purchaser of the item connected with the debt
• D) the original creditor and the second-hand purchaser of the item connected with the debt
• E) the second creditor and the original purchaser of the item associated with the debt

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Definitions:

Equity Financed

A means of raising capital through the sale of shares in a company, providing investors with ownership interests.

Accounts Receivable Policies

Guidelines and procedures a company follows to manage money owed by customers for goods or services delivered on credit.

Shares of Stock

Shares, as units of corporate or asset ownership, provide an even allocation of profit distributions in the guise of dividends, pending announcements.

Cash Flow

A financial term describing the net amount of cash and cash-equivalents being transferred into and out of a business.