Which of the Following Is a Collateral Promise

question 73

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 the above are collateral promises.

Analyze the impact of patent expirations on market dynamics and profitability.

Grasp the effect of entry barriers on market competition and profitability.

Understand the relationship between market structure and elasticity of demand and supply curves.

Comprehend the factors influencing the pricing decisions in monopolies.

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Definitions:

Par Common Stock

The face value of a share of common stock, as stated in the corporate charter, which is the minimum amount that must be paid for a share at issuance.

Paid-In Capital

The amount of capital provided by shareholders to a company in exchange for shares of stock, representing the funds contributed by investors during the issuance of shares.

Stockholders' Equity

Stockholders' Equity represents the owners' claim after all liabilities have been deducted from total assets. It's also known as shareholders' equity or equity.

Par Value

A nominal or face value assigned to a share of stock by the company's charter, unrelated to the market value.