A Difference Between a Surety and a Guarantor Is That

question 88

Multiple Choice

A difference between a surety and a guarantor is that the guarantors:

• A)must be paid for their services.
• B)should enter into a deed of trust with the creditors.
• C)should keep a collateral with the creditors.
• D)become liable only if the principal debtor first defaults.

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Definitions:

Project Ranking

The process of ordering projects by some criteria such as profitability, risk, or strategic value to prioritize investments and resource allocation.

Profitability Index

An instrument in finance that quantifies the potential profit of an investment by dividing the current value of anticipated cash flows by the initial cost of investment.

Modified Internal Rate Of Return

An adjustment of the Internal Rate of Return formula that rectifies its limitations by incorporating different reinvestment rates for cash flows received over the investment's lifetime.