Bud Is Unable to Obtain a Loan Without Some Form

question 35

Essay

Bud is unable to obtain a loan without some form of additional reassurances. Bud comes to you for assistance. You are willing to help Bud, but you wish to protect yourself from liability as much as possible. Would you prefer a surety or a guaranty? The bank issuing the loan also wishes to protect itself as much as possible. Would the bank prefer a surety or guaranty? If your oral assurances are enough to solidify the loan, has a surety or guaranty been formed?

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Definitions:

Channel Functions

The activities and processes used to move goods from producers to consumers, including transportation, storage, and distribution.

Larger Firms

Business organizations characterized by a significant scale of operations, often including extensive employee numbers, product lines, and market reach.

Supply Chains

Encompass the entire chain of production from the sourcing of raw materials to the delivery of the final product to the consumer.

Manufacturers

Companies or individuals that produce goods using raw materials or components, often on a large scale.