Ben Was Talking to Harry Who Was Drunk

question 35

Multiple Choice

Ben was talking to Harry who was drunk. Harry agreed to give his car to Ben as a token of friendship. Once sober, Harry asks Ben to return his car. This contract is considered ________.

• A) valid
• B) voidable
• C) void
• D) unenforceable

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Definitions:

Net Working Capital

The disparity between an organization's immediate assets and its short-term obligations, showcasing its ability to cover short-term debts.

Accounts Payable

The amount a company owes to suppliers or vendors for goods or services purchased on credit.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered but not yet paid for.

Incremental Cash Flows

Incremental cash flows are the additional operating cash flows that an organization receives from taking on a new project, used to analyze the profitability of that project.