Fact Pattern 28-1A

question 3

Multiple Choice

Fact Pattern 28-1A
Dina asks Edie to co-sign a credit application so that she can borrow money and buy a truck from Finest Quality Motors.
-Refer to Fact Pattern 28-1A. If Edie signs the application only after lan?guage is included that requires Finest to exhaust its legal remedies against Dina before looking to her, then Edie is

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

---

Definitions:

Variable Cost

Expenses that undergo alteration in response to the volume of production executed.

Office Rent

The cost associated with leasing a space for business operations or administrative work.

Financial Break-even Point

The Financial Break-even Point is the level of revenue at which a company's total costs and total revenues are exactly equal, indicating no net profit or loss.

Net Present Value

A financial analysis method used to determine the overall value of a projected investment or project by calculating the present value of expected future cash flows.