If Jack Is a Surety for John,Jack's Right to Reimbursement

question 36

Multiple Choice

If Jack is a surety for John,Jack's right to reimbursement would include:

• A)the right to any collateral in the possession of the creditor.
• B)the right to recover from the principal the costs paid on the principal's obligation.
• C)the right to recover costs plus interest paid on the principal's obligation.
• D)all the rights that the creditor had.

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Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's or industry's output expands.

Factor Suitability

A principle in economics that factors of production such as land, labor, and capital are more productive when appropriately matched with their specific uses or industries.

Law of Diminishing Returns

The Law of Diminishing Returns is an economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Worker Safety

Regulations and practices designed to protect employees from hazards and risks associated with their work environment.