Which of the Following Is a Collateral Promise

question 62

Multiple Choice

Which of the following is a collateral promise?

• A) A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will."
• B) Andrew promises Donald that if Donald cannot pay his bills, Andrew will.
• C) A father tells a merchant to deliver a computer to his daughter and says, "Send me the bill. I'll pay for it."
• D) All of these are collateral promises.

Explore the role and effects of formalization on organizational coordination and efficiency.

Understand how global market pressures influence organizational design choices, particularly the shift from geographical to client-based structures.

Appreciate the role of technology in shaping organizational structures and coordination mechanisms.

Comprehend the rationale behind organizational restructuring towards flatter structures and the push towards delayering.

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Definitions:

Direct Materials Inventory

Raw materials that are directly used in the production process and can be easily traced to the finished product.

Finished Goods Inventory

The stock of completed products that are ready to be sold but are still in inventory.

Cost of Goods Sold

Expenses directly related to manufacturing goods that a firm sells.

Finished Goods

Merchandise that has been through the manufacturing phase and is now ready for customer purchase.