The Difference Between a Guarantee and an Indemnity Is That

question 74

Multiple Choice

The difference between a guarantee and an indemnity is that

• A)indemnities need to be in writing to be enforceable.
• B)a guarantee is a conditional promise whereas an indemnity is not.
• C)a guarantee is a promise to assume another's debt.
• D)the Statute of Frauds applied only to indemnities.
• E)a guarantee is given to a bank and an indemnity to a party that is not a bank.

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Definitions:

Overcommitting

The act of promising more resources, time, or effort than can realistically be delivered, often leading to stress or failure to meet expectations.

Supply Management

The process of managing relationships with suppliers and controlling all the materials needed to produce goods or services.

Horizontal Integration

A strategy where a firm grows by acquiring or merging with its competitors in the same industry to achieve economies of scale or scope.

Early Supply Involvement

The practice of involving suppliers at the early stages of a product development process to leverage their expertise and insights for better outcomes.