Use the Fact Situation in Q5 to Answer the Related

question 39

Multiple Choice

Use the fact situation in Q5 to answer the related question that follows. In the fact situation above,assume that instead of being told about the franchises at the barbecue,Edmund told this to Jane during a meeting with her in her office at the company.In this case,the result of the lawsuit would most likely be

• A)that Jane is deemed to have bought the franchises as an agent of the company which now owns them.
• B)that Jane must pay damages to the company.
• C)that Jane must resign as a director of the company.
• D)that Jane must assign the franchises which she bought to the company.
• E)none of the above

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Definitions:

Link-Chain Method

A statistical method used for adjusting economic or financial time series data for the effects of inflation or other external factors to show real changes over time.

Dollar-Value LIFO

Dollar-value LIFO (Last In, First Out) is an accounting method used for inventory that measures the cost of inventory in dollar terms, adjusting for inflation.

Cost Index

An index that measures the changes in the cost or price of specific goods or services over time.