Which of the following best explains 'concern guarantee'?
A) Guarantee issue by supplier.
B) Guarantee issued by the bank of the supplier.
C) Holding company secures payment for agreed sum in case business unit fails to make payments.
D) Business unit guarantees to pay holding company.

Question

Which of the following best explains 'concern guarantee'? 
A) Guarantee issue by supplier. 
B) Guarantee issued by the bank of the supplier. 
C) Holding company secures payment for agreed sum in case business unit fails to make payments. 
D) Business unit guarantees to pay holding company.

Quizplus · Accepted Answer

Concern guarantee refers to a holding company securing payment for an agreed sum in case a business unit fails to make payments.

Which of the Following Best Explains 'Concern Guarantee