Timothy martinez, owner of koenig & vits, inc. ("k& v"), guaranteed k& v’s debt to community bank & trust. the guaranty stated that the bank was not required to seek payment of the debt from any other source before enforcing the guaranty; k& v defaulted. through a wisconsin state court, the bank sought payment of $536,739.40, plus interest, at the contract rate of 7.5 percent, from martinez. martinez argued that the bank could not enforce his guaranty while other funds were available to satisfy k& v’s debt. for example, the debt might be paid out of the proceeds of a sale of corporate assets. is this an effective defense to a guaranty? why or why not?

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Suppose that a worker in agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in zenland can produce either 5 units of organic grain or 15 units of incense per year. there are 20 workers in agland and 10 workers in zenland. currently the two countries do not trade. agland produces and consumes 100 units of grain and 20 units of incense per year. zenland produces and consumes 50 units of grain and no incense per year. if each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by a. 30 units of grain and 100 units of incense. b. 30 units of grain and 150 units of incense. c. 50 units of grain and 90 units of incense. d. 50 units of grain and 130 units of ince

The purpose of safety stock is to: a. eliminate the possibility of a stockout. b. control the likelihood of a stockout due to variable demand and/or lead time. c. eliminate the likelihood of a stockout due to erroneous inventory tally. d. protect the firm from a sudden decrease in demand. e. replace failed units with good ones.