The Gain That Occurs When the Owner of an Asset

question 24

Multiple Choice

The gain that occurs when the owner of an asset actually sells it for more than she paid for it is called a(n)

• A) dividend.
• B) realized capital gain.
• C) coupon payment.
• D) economic profit.

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Definitions:

Condition Subsequent

A condition in a contract that, when fulfilled, terminates an existing obligation under the contract.

Legal Tender

Currency that by law must be accepted as payment for debts and financial obligations.

Breach Of Warranty

The failure to fulfill the terms of a promise or assertion concerning the quality or nature of a product or service.

Exemption Clause

Contractual terms that aim to limit or exempt a party from liability or obligation in certain situations; a reiteration emphasizing its role as a liability limiter.