A Contract of Guaranty Would Not Be Terminated If It

question 44

Multiple Choice

A contract of guaranty would not be terminated if it were altered without the consent of the guarantor so as to

• A) add an additional guarantor.
• B) lengthen the term.
• C) change the amount involved.
• D) change the name of the debtor.

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Definitions:

Fixed Expenses

Expenses that remain constant regardless of any variations in the amount of goods produced or sold, including charges like lease payments, wages, and premiums.

Accounting System

A systematic process of recording, summarizing, and reporting the financial transactions of a business to provide insights into its financial position.

Selling Price

The price at which a product or service is offered to the consumer.

Contribution Margin

The contribution margin is the sales revenue minus the variable costs. It shows how much revenue contributes to covering the fixed costs and generating profit.