If a Third Party Incurs a Secondary Liability for a Debt

question 145

Multiple Choice

If a third party incurs a secondary liability for a debt, he has given a(n)

• A) indemnity.
• B) guarantee.
• C) obligation.
• D) debt.
• E) easement.

Understand the concept of piercing the corporate veil and the circumstances under which it may occur.

Familiarize with the terms and legal implications surrounding non-profit corporations and their uniqueness.

Understand the typical terms and conditions under which corporate directors serve.

Grasp the concept of quorum requirements for director meetings.

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Definitions:

Sunk Cost

Expenses that have already been incurred and cannot be recovered or altered, which should not affect future business decisions.

Materials Costs

The expense incurred by acquiring raw materials necessary for producing goods, excluding indirect materials like maintenance supplies.

Processing Costs

Expenses related to the steps involved in transforming raw materials into finished goods.

Relevant

Pertinent or related to the matter at hand, often used in decision-making to describe information that should be considered.