The Payment of Brian's Debt to Chuck Is Guaranteed by Brian's

question 67

Multiple Choice

The payment of Brian's debt to Chuck is guaranteed by Brian's personal property. This is

• A) a reorganization.
• B) a secured transaction.
• C) a suretyship agreement.
• D) a violation of most state laws.

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Definitions:

Note Payable

A written promise to pay a specific amount of money, either on demand or at a set future date, typically used in business to document debt agreements.

Debtor's Book Value

The value of all debts owed to a company, often reflecting the accounts receivable balance on the balance sheet.

Unsecured Creditors

Creditors who have lent money without taking any collateral, thus bearing a higher risk in case of debtor's default.