With a(n)__________ guaranty,subsidiaries guarantee,or pledge their assets as security for,the parent's debt.

Question

Quizplus · Accepted Answer

Upstream guaranty is when subsidiaries guarantee or pledge their assets as security for their parent company's debt. Downstream guaranty is the opposite, where the parent company guarantees or pledges its assets as security for its subsidiaries' debt. Leveraged guaranty refers to a situation where the guarantee is made with borrowed funds. Subordination refers to the prioritization of debt payments, where certain creditors are paid before others.

With A(n)__________ Guaranty,subsidiaries Guarantee,or Pledge Their Assets as Security For,the