Upon Paying the Principal Debtor's Entire Obligation, the Surety Is

question 12

Multiple Choice

Upon paying the principal debtor's entire obligation, the surety is __________ the rights of the creditor.

• A) subject to
• B) subrogated to
• C) exonerated by
• D) set off by

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Definitions:

Insurance Payment

A sum of money paid regularly to an insurance company for a policy, which provides financial protection against loss or harm.

Shipping Charges

The fees associated with the transport of goods from the seller to the buyer, often based on factors like weight, distance, and delivery speed.

Factors Of Production

The resources used to create goods or services, typically categorized into land, labor, capital, and sometimes entrepreneurship.

Short-Run

A time period in economics during which at least one input, such as plant size, is fixed and cannot be altered by a firm to respond to market changes.