Contracts
In Alaska, a 'personal guarantee' on a commercial lease means that:
AThe landlord personally guarantees the tenant's business success
BA principal of the tenant entity (such as an LLC) personally guarantees the lease obligations if the entity defaults✓ Correct
CThe tenant's employees are personally responsible for the lease
DThe lease is guaranteed by the Alaska Housing Finance Corporation
Explanation
A personal guarantee in a commercial lease requires a principal (such as the owner of an LLC) to personally guarantee the entity's lease obligations. This protects the landlord if the business fails — the landlord can pursue the individual's personal assets for unpaid rent and other lease obligations.
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