Under the ________,No Writing Is Required Where the Guarantor Makes

question 40

Multiple Choice

Under the ________,no writing is required where the guarantor makes a collateral promise for the main purpose of obtaining some personal economic advantage.

• A)parol evidence rule
• B)leading object rule
• C)collateral contract rule
• D)part performance rule

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Definitions:

Fixed Assets

Long-term tangible assets used in the operations of a business and not expected to be converted to cash within a year.

Long-Term Debt

Debt that is due for repayment in more than one year, often used to finance major investments or acquisitions.

Purchase Method

An accounting technique used to consolidate the financial statements of a buying entity and its target, where the purchase transaction is treated as an acquisition and the buyer revalues the target company's assets and liabilities at their current fair market values.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity of the business.