Poole Contractors Makes a Contract with Delta Resources to Pay

question 25

Multiple Choice

Poole Contractors makes a contract with Delta Resources to pay $50, 000 for the supply of 500 truckloads of sand within next week.Delta Resources delivers the sand in two days after the contract was made.Poole Contractors pays the $50, 000 promised in the contract.This is an instance of ________.

• A)substantial performance
• B)material breach
• C)minor breach
• D)strict performance

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Definitions:

Minimum Required Rate Of Return

The lowest acceptable return on an investment, used as a benchmark for evaluating potential investments.

Average Operating Assets

This refers to the average value of the assets used in operations over a certain period, which can indicate the efficiency of asset use in generating income.

Sales

The revenue generated from the selling of goods or services by a company or an enterprise to its customers.

Turnover

Sales divided by average operating assets.