Which of the Following Defenses Goes to the Merits of a Primary

question 29

Multiple Choice

Which of the following defenses goes to the merits of a primary contract and can be used by a surety?

• A) Lack of consideration
• B) Lack of capacity
• C) Insanity
• D) Bankruptcy

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Definitions:

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity in a given tax period.

Taxable Income

The amount of income that is used to calculate an individual or a corporation's income tax due, after all deductions and exemptions.

Federal Unemployment Compensation

Financial assistance provided by the federal government to individuals who have lost their jobs.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the tax rate that applies to each additional dollar of taxable income.