Fact Pattern 32-1 Petro Refinery Asks Quality Bank for a Loan

question 40

Multiple Choice

Fact Pattern 32-1 Petro Refinery asks Quality Bank for a loan to increase its inventory. Quality requires Rob, Petro's president, to sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to make a sale of refined oil to Slick Lubricants Inc., Petro asks Slick's outside accountant Tina to co-sign a credit application.
Refer to Fact Pattern 32-1. Tina signs the application. According to the terms, if Slick defaults, Petro can look to her for payment without first pursuing legal remedies against Slick. Tina is

• A) a surety.
• B) a lienor.
• C) a guarantor.
• D) a creditor.

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Definitions:

Relationship Behavior

Involves actions and interactions among individuals, affecting how they relate and connect with each other.

Emotional Support

Assistance provided by an individual to another, offering comfort, reassurance, and a sense of belonging, typically in times of stress or distress.

Situational Leadership Model

A flexible leadership approach that advocates adapting leadership style based on the maturity and competency of the team members.

Selling Style

The approach or method a salesperson uses to engage and persuade potential customers to make a purchase.