Which of the Following Does NOT Affect the Enforceability of a Guarantee

question 49

Multiple Choice

Which of the following does NOT affect the enforceability of a guarantee?

• A) the death of the primary debtor
• B) lack of consideration
• C) the absence of a note or memorandum signed by the guarantor
• D) the release by the creditor of security placed in support of the loan without the guarantor's approval
• E) the release of other guarantors by the creditor without the knowledge of the remaining guarantors

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Definitions:

Par Value

The nominal or face value of a stock or bond, as stated by the issuing corporation.

Large Stock Dividend

A distribution of a substantial number of shares to a company's shareholders, often used to conserve cash while still rewarding investors.

Market Value

Market value is the current price at which an asset or service can be bought or sold in the market.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn reduces the price per share.