Fact Pattern 28-1B

question 18

Multiple Choice

Fact Pattern 28-1B
Beta Software Corporation is a new company that needs to borrow money to meet its payroll. Cliff, president and owner of Beta, asks First National Bank to loan Beta the funds.
-Refer to Fact Pattern 28-1B. If First National insists that Cliff sign the loan applica?tion, making himself personally liable for payment only if Beta de?faults, Cliff will be

• A) a guarantor and a surety.
• B) a guarantor only.
• C) a surety only.
• D) neither a guarantor nor a surety.

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Definitions:

Army Corps of Engineers

A federal agency under the Department of Defense in the United States, responsible for public engineering, design, and construction management, including improvements to natural resources and infrastructure.

Clean Air Act

A wide-ranging federal legislation in the United States designed to control emissions from both stationary and mobile sources in order to safeguard public health and the environment.

Acid Rain

Precipitation containing harmful amounts of sulfuric and nitric acids resulting from the atmospheric emission of sulfur dioxide and nitrogen oxides.

Scrubbers

Pollution control devices designed to remove particulates and/or gases from industrial exhaust streams.