The Distinction Between a Guarantee and A(n) ________ Is Important

question 93

Multiple Choice

The distinction between a guarantee and a(n) ________ is important, because in most provinces the Statute of Frauds requires that only a guarantee be in writing.

• A) obligation
• B) agreement
• C) promise
• D) indemnity
• E) interest

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Definitions:

Profit Share

An arrangement where profits from a business venture are distributed among the participants or stakeholders.

General Partner

A partner in a limited partnership whose liability is unlimited.

Limited Liability

Refers to a legal structure where a person's financial responsibility for business debts does not exceed their investment in the company.

Partnership Firm

A business entity in which two or more individuals share ownership, responsibilities, profits, and liabilities.