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Which of the following would be considered a personal contingent liability for a guarantor of a...

Which of the following would be considered a personal contingent liability for a guarantor of a business loan?

A) The individual has subordinated debt to the business.
B) The individual has guaranteed another loan to an unrelated business.
C) The individual is considering borrowing to purchase real estate.
D) The individual is engaged to be married.

Solutions

Expert Solution

The individual has guaranteed another loan to an unrelated business.

This statement is correct

It is a contingent liability as the liability in this case arises if one defaults in the loan.

jeff jeffy answered 2 years ago
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