Fact Pattern 33-1Petro Oil Refinery Asks Quality Bank for a Loan

question 57

Multiple Choice

Fact Pattern 33-1Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro asks its outside accountant Tina to co-sign a credit application.
-Refer to Fact Pattern 33-1.If Robin is a guarantor,then the guaranty is required to be in writing because of 

• A) ​the debtor's right of redemption. 
• B) ​the co-signer's right of contribution. 
• C) ​the creditor's transfer of possession. 
• D) ​the Statute of Frauds.

Comprehend the principles of Management by Objectives (MBO) and its process.

Distinguish between positive and negative reinforcement in the context of control.

Acknowledge the importance of personal observation in the control process.

Understand the characteristics of effective controls within organizations.

---

Definitions:

Premarket Approval

A regulatory process by the FDA that requires the demonstration of safety and effectiveness before a new medical device can be marketed.

Corrective Advertising

Advertising that aims to rectify inaccurate or misleading claims made in previous advertisements.

Consumer Review Fairness Act

A federal law that protects consumers' ability to share their honest opinions about a business's products, services, or conduct, without fear of legal retaliation.

Honest Opinions

Honest opinions refer to statements or judgments made in good faith and believed to be true, often considered in legal contexts related to defamation or free speech.