Final answer:
True. A borrower is a person or a company that receives money from another party with the agreement that the money will be repaid. A cosigner is another person or firm who legally pledges to repay some or all of the money on a loan if the original borrower does not.
Step-by-step explanation:
True. A borrower is a person or a company that receives money from another party with the agreement that the money will be repaid. This can be seen in various scenarios such as individuals taking out personal loans from banks or companies obtaining loans from financial institutions to fund their operations or expansion.
A cosigner is another person or firm who legally pledges to repay some or all of the money on a loan if the original borrower does not. This is a common practice when a borrower does not have a strong credit history or cannot meet the lending requirements on their own.
For example, if someone wants to buy a house but does not have enough income or credit history to qualify for a mortgage, they may ask a family member to cosign the loan with them. In this case, the borrower is the person who receives money from the bank or mortgage lender, while the cosigner is the person who pledges to repay the loan if the borrower is unable to do so.