Which Kind of Party Signs an Instrument to Provide Credit

question 15

Multiple Choice

Which kind of party signs an instrument to provide credit for another party that has also signed the instrument?

• A)Accommodation
• B)Agreeable
• C)Promisor
• D)Agent
• E)Principle

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Definitions:

De Jure Corporation

Latin for “lawful corporation” a corporation that has met the mandatory statutory provisions and thus received its certificate of incorporation.

De Facto Corporation

A company that acts like a corporation and enjoys some of its benefits, despite not being duly incorporated according to statutory requirements.

Corporation By Estoppel

A defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often referring to income taxed both at the corporate level and personally.