For Five Years,Maxine Had Been Regularly Receiving the Same Bill

question 14

Multiple Choice

For five years,Maxine had been regularly receiving the same bill for $850 from Credit Landscaping.She didn't think she should pay it because they botched up the landscaping around her house.However,now,after these five years,she sends them a $425 cheque with a note saying,"Take this-it's all you're going to get." This move by Maxine will

• A)start the time all over again on the statue of limitations.
• B)get herself out of the liability.
• C)have no effect on the limitation time period.
• D)immediately give rise to a legal action.
• E)spur Credit Landscaping to turn the balance owed over to a collection agency.

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Definitions:

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.

Stockholders Of Record

Individuals or entities that are officially recorded as owning shares of a company at a specific point in time.

Treasury Stock

Initially issued shares that were subsequently repurchased by the company, leading to a decrease in the total number of shares on the market.

Par Common Stock

The nominal or face value assigned to common stock shares as recorded in the corporate charter, influencing the accounting of company stock transactions.