Matt Just Made a Fortune Inventing a New Piece of Software

question 52

Multiple Choice

Matt just made a fortune inventing a new piece of software and has generously agreed to support his friend's application for a bank loan. Matt tells his friend he is willing to cover the debt no matter what happens. In order for this promise to be enforceable,

• A) Matt's friend needs to get Matt to make that same promise to the bank.
• B) Matt's friend needs to get Matt to fax the bank.
• C) the bank needs to get it in writing.
• D) Matt's friend needs to have the promise notarized and sent to the bank by registered mail.
• E) the bank needs do nothing.

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Definitions:

Equity Share

A share of ownership in a company, which entitles the shareholder to a claim on part of the company's assets and earnings.

Private Debt

Debt financing obtained from private sources rather than through a public market, often used by companies for growth or as an alternative to bank loans.

Financial Strength

A measure of a company or individual's ability to manage their debts and meet financial obligations.

Canada

A country in North America known for its vast landscapes, multicultural heritage, and strong economy.