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Which type of guarantee is given for series of transaction ?
- a)general guarantee
- b)implied guarantee
- c)continuous guarantee
- d)general and continuous guarantee
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Which type of guarantee is given for series of transaction ?a)general ...
Explanation:
- Types of guarantees:
- General guarantee: A general guarantee is a promise made by a seller to a buyer that the product or service being sold meets certain standards or specifications. It is a broad guarantee that covers all aspects of the transaction.
- Implied guarantee: An implied guarantee is a guarantee that is not explicitly stated but is assumed to be part of the transaction. For example, when you purchase a product, there is an implied guarantee that the product will be fit for its intended purpose.
- Continuous guarantee: A continuous guarantee is a guarantee that remains in effect for a series of transactions or for a specified period of time. It provides ongoing protection to the buyer for multiple transactions.
- General and continuous guarantee: This type of guarantee combines the broad coverage of a general guarantee with the ongoing protection of a continuous guarantee. It ensures that the buyer is covered for a series of transactions with the same seller.
- Given for series of transactions:
- The type of guarantee given for a series of transactions is a continuous guarantee.
- A continuous guarantee provides ongoing protection to the buyer for multiple transactions with the same seller.
Most Upvoted Answer
Which type of guarantee is given for series of transaction ?a)general ...
Understanding Continuous Guarantee
In the context of transactions, a continuous guarantee refers to a guarantee that covers a series of transactions over a period of time, rather than a single transaction. This is particularly relevant in business relationships where ongoing credit or services are extended.
Key Features of Continuous Guarantee:
Practical Applications:
In practical terms, continuous guarantees are commonly used in business contexts such as:
Conclusion:
Hence, option 'C' - continuous guarantee is the correct answer as it encompasses a series of transactions under a single guarantee framework, making it distinct from general or implied guarantees. This ensures ongoing protection and security for creditors in a dynamic business environment.
In the context of transactions, a continuous guarantee refers to a guarantee that covers a series of transactions over a period of time, rather than a single transaction. This is particularly relevant in business relationships where ongoing credit or services are extended.
Key Features of Continuous Guarantee:
- Multiple Transactions: Unlike a general guarantee that may apply to one specific transaction, a continuous guarantee is designed to cover multiple transactions, providing broader protection.
- Duration: The guarantee remains in effect for as long as the relationship exists, which means it can apply to future transactions without needing to be renewed or re-signed.
- Flexibility: Continuous guarantees offer flexibility for both parties, as they do not require a new guarantee for each transaction, streamlining the process.
- Risk Management: For lenders or suppliers, continuous guarantees help manage risk effectively over time, ensuring they have recourse in case of default across multiple transactions.
Practical Applications:
In practical terms, continuous guarantees are commonly used in business contexts such as:
- Supplier Agreements: Where a supplier provides goods or services on credit over time.
- Banking Relationships: Involving overdrafts or credit lines that may be accessed repeatedly.
Conclusion:
Hence, option 'C' - continuous guarantee is the correct answer as it encompasses a series of transactions under a single guarantee framework, making it distinct from general or implied guarantees. This ensures ongoing protection and security for creditors in a dynamic business environment.
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Which type of guarantee is given for series of transaction ?a)general guaranteeb)implied guaranteec)continuous guaranteed)general and continuous guaranteeCorrect answer is option 'C'. Can you explain this answer?
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Which type of guarantee is given for series of transaction ?a)general guaranteeb)implied guaranteec)continuous guaranteed)general and continuous guaranteeCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which type of guarantee is given for series of transaction ?a)general guaranteeb)implied guaranteec)continuous guaranteed)general and continuous guaranteeCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which type of guarantee is given for series of transaction ?a)general guaranteeb)implied guaranteec)continuous guaranteed)general and continuous guaranteeCorrect answer is option 'C'. Can you explain this answer?.
Which type of guarantee is given for series of transaction ?a)general guaranteeb)implied guaranteec)continuous guaranteed)general and continuous guaranteeCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which type of guarantee is given for series of transaction ?a)general guaranteeb)implied guaranteec)continuous guaranteed)general and continuous guaranteeCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which type of guarantee is given for series of transaction ?a)general guaranteeb)implied guaranteec)continuous guaranteed)general and continuous guaranteeCorrect answer is option 'C'. Can you explain this answer?.
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