James Hires Franco for a Painting Job

question 14

Multiple Choice

James hires Franco for a painting job. Their contract explicitly states that Franco's employment can be terminated if he is employed by another party during the contract period. Two weeks into the job, James finds out that Franco is also working for a painting agency two blocks away and terminates his employment. This is an instance of ________.

• A) Condition precedent
• B) Condition subsequent
• C) Concurrent condition
• D) Implied condition

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Definitions:

Common Stock

Common stock represents ownership shares in a corporation, providing voting rights and potential dividends to shareholders.

Earnings Per Share

A financial ratio that measures the amount of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Public Company

A company whose ownership is distributed amongst general public shareholders through the trading of shares publicly on the stock exchange.

Net Income

What a company ultimately earns in profit after removing the costs of taxes and expenses from its revenue.