A Third Party in a Guaranty Contract Is Primarily Liable

question 25

True/False

A third party in a guaranty contract is primarily liable to the creditor for the debtor's debt.

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Definitions:

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings distributed to its shareholders in the form of dividends.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales by calculating the percentage of revenue that exceeds the costs of goods sold.

Debt-Equity Ratio

A ratio indicating a company's use of financial leverage, found by dividing liabilities by stockholders' equity.

Dividend Payout Ratio

The portion of earnings paid to shareholders in dividends, calculated as total dividends divided by net income.