Which of the Following Is an Exception to the Suretyship

question 27

Multiple Choice

Which of the following is an exception to the suretyship provision requirement under the statute of frauds?

• A) A collateral promise made to the creditor.
• B) A promise, the leading object of which is to obtain an economic benefit for oneself.
• C) A collateral promise where there are three parties and two contracts involved.
• D) A promise by an executor to pay the debts of the decedent from the executor's own funds.

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Definitions:

Service Company

A business that provides intangible products or services to customers, rather than physical goods.

Manufacturing Company

A company that uses raw materials, components, and parts to produce finished goods through the use of labor, machines, and equipment.

Unit Contribution Margin

The measured profit that each unit sold contributes toward fixed costs and profit, calculated by subtracting variable costs from the sales price per unit.

Operating Income

Earnings before interest and taxes (EBIT), which represents the profit a company earns from its core operations.