Sam,the Owner of a Toy Store,dies Unexpectedly at the Age

question 16

Multiple Choice

Sam,the owner of a toy store,dies unexpectedly at the age of 56.His lifelong business associate,Paul,is appointed the administrator of the estate.Sam had a personal debt of $8,000 which he owed to Art's Appliance Store.Paul says to Art,"If there isn't enough money in the estate,I'll personally see that the bill is paid." Which of the following is correct?

• A) The oral statement is enforceable because Paul is the administrator.
• B) An oral statement such as this is not enforceable because it is outside the statute of frauds.
• C) An oral statement such as this is not enforceable because this promise is within the statute of frauds.
• D) The oral statement is enforceable because it is a collateral promise.

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Definitions:

Marketing Manager

A professional responsible for overseeing the promotion and selling of a company's products or services, including planning and executing marketing strategies.

Contribution Format

is an income statement format that separates fixed and variable costs, highlighting the contribution margin.

Net Operating Income

The profit generated from a company's operational activities after subtracting operating expenses from revenue.

Target Profit

The amount of net income that a company aims to achieve within a specific time frame.