An Agreement Under Which One Party Agrees to Pay Drafts

question 44

Multiple Choice

An agreement under which one party agrees to pay drafts drawn by a creditor is called a: ______.

• A) contract of surety.
• B) guaranty contract.
• C) letter of credit.
• D) debtor's agreement.

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Definitions:

Task-Oriented

An approach or behavior focused primarily on completing tasks or achieving specific objectives.

Performance-Oriented

Focused on achieving high levels of performance and often concerned with the outcomes or results of actions rather than the process.

Cohesive

The characteristic of elements of a group sticking together effectively and remaining united in pursuit of common goals.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.