Sometimes,a Creditor Refuses to Extend Credit to a Debtor Unless

question 107

True/False

Sometimes,a creditor refuses to extend credit to a debtor unless a third party agrees to become liable on the debt.The third person's credit becomes the security for the credit extended to the debtor.This relationship may be either a surety arrangement or a guaranty arrangement.

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Definitions:

Dividend Elimination

The process of removing intercompany dividends out of consolidated profit to avoid double counting when preparing consolidated financial statements.

Dividend Revenue

Income received from owning shares in a company, typically distributed from the company’s profits at regular intervals to its shareholders.

Dividend Declared

A formal announcement by a company’s board of directors to pay a specified dividend to the company's shareholders, determining the amount and date of the payment.

Reverse Acquisition

A transaction where the entity being acquired ends up controlling the combined entity, essentially acquiring the company that formally takes it over.