Use This Fact Situation to Answer the Related Questions That

question 79

Multiple Choice

Use this fact situation to answer the related questions that follow it. John Jones is an 80-year-old man who lives in Ontario.Two years ago,John made a will in which he left one-third of his entire estate (all of his assets) to each of his three children,Mary,George,and Edward.Harry told the children what he was leaving them just after he made his will.Since that time,Edward has been unhappy about getting only one-third of his father's estate,and for the past two years he has been telling his father that Mary and George really hate their father and cannot wait until he dies.Lately John has become ill,and because Edward is the only son in Ontario,he has been taking care of his father.Each time that Edward sees his father,which is two to three times a week,he reminds him about Mary's and George's feelings towards him and tells John that he is the only child who really loves his father.John,seeing how much care Edward is giving him,begins to believe Edward and decides to make a new will in which he leaves his entire estate to Edward and nothing to Mary and George.
George's changing his will under these circumstances is a classic example of

• A)duress by Edward.
• B)fraud by Edward.
• C)deceit by Edward.
• D)undue influence by Edward.
• E)misrepresentation by Edward.

---

Definitions:

Tax Rate

The percentage of income or value of a transaction that is paid to the government as tax.

Retention Ratio

A metric that shows the percentage of net income retained in the company rather than paid out as dividends to shareholders.

Debt-Equity Ratio

The quotient representing a company's use of debt over equity, obtained by dividing its liabilities total by shareholder equity.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales with average total assets.