Equity Company and Faye Enter into a Contract for Faye

question 7

Multiple Choice

Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders. When Faye's schedule conflicts, she asks Gudren to serve Faye's coffee and pastries at the meeting. This transfer of duties is

• A) a delegation.
• B) an assignment.
• C) a third party beneficiary contract.
• D) prohibited under the doctrine of privity of contract.

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Definitions:

Treasury Stock

Refers to the shares that a company has repurchased from the stock market and holds in its own treasury.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Income Statement

A financial statement that shows a company's revenues and expenses, leading to the total profit or loss over a specific period.

Par Stock

The ideal stock level that a business aims to maintain to fulfill customer orders without overstocking.