Omar Asserts That a Deal He Entered into with Pat

question 57

Multiple Choice

Omar asserts that a deal he entered into with Pat to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Omar's best defense to the enforcement of this contract is

• A) a desire not to perform.
• B) insufficient capital.
• C) preliminary indications of unsatisfactory results.
• D) the lack of a party's voluntary consent.

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Definitions:

Incidence

In economics, the allocation or distribution of a tax's economic burden between buyers and sellers.

Tax Rate Structure

The percentage of a tax base that must be paid in taxes—25 percent of income, for example.

Tax Base

The tax base is the total amount of income, property, assets, or other wealth that is subject to taxation by a taxing authority.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, indicating the impact of each additional dollar of income on taxes owed.