Which of the Following Statements Is True of Accommodation Sureties

question 48

Multiple Choice

Which of the following statements is true of accommodation sureties?

• A) They are people paid for serving as a surety.
• B) They are protected by the courts at a higher level than other types of sureties.
• C) They must show that they will be harmed by an extension of time before they are relieved of responsibility.
• D) They are professional companies that take payment for acting as a surety.

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Definitions:

Initial Investments

The initial capital or resources put into a project, business, or investment, critical for startup and initial operations.

Net Operating Income

a gauge of a company's financial performance, calculated as gross income minus operating expenses, excluding taxes and interest.

Present Value

The present worth of a sum of money or cash flows expected in the future, based on a certain rate of return.

Cash Flow

The combined value of financial transactions into and out of an enterprise, crucially affecting its cash reserves.