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

question 41

Multiple Choice

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

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

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Definitions:

Sub-Par

Below an expected or standard level of quality or performance.

Excuses

Reasons or explanations put forward to defend or justify a fault or offense, often made to avoid taking responsibility.

Self-Talk

The internal dialogue that occurs in one's mind, which can be positive or negative and has the power to influence feelings and behaviors.

Confidence

A feeling of self-assurance arising from one's appreciation of their own abilities or qualities.