Which of the Following Is True Regarding the Liability of an Accommodation

question 4

Multiple Choice

Which of the following is true regarding the liability of an accommodation party?

• A) As a maker, an accommodation party has primary liability; but as an endorser, the party has secondary liability.
• B) An accommodation party has primary liability both as a maker and as an endorser.
• C) An accommodation party has secondary liability both as a maker and as an endorser.
• D) An accommodation party has primary liability as either a maker or endorser only if all other parties to the instrument have filed bankruptcy.
• E) An accommodation party has primary liability as a maker only if all other parties have filed bankruptcy, and secondary liability in any other case regardless of whether the accommodation party is the maker or endorser.

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Definitions:

Pie Chart

A circular graph divided into slices to illustrate numerical proportions in a dataset, where the arc length of each slice is proportional to the quantity it represents.

Outliers

Observations that are significantly different from, and lie outside the range of, most of the other data points.

Data Point

An individual value or piece of data that is collected as part of a dataset.