Hartman, Who Has Worked for Aratize Inc

question 44

Multiple Choice

Hartman, who has worked for Aratize Inc.for 25 years, is retiring.Upon hearing the news of his retirement, the president of Aratize announces a bonus of $250, 000 to Hartman for his exceptional services toward Aratize thus far.But upon retiring, Hartman isn't paid the bonus.Hartman decides to sue the president and Aratize to recover the promised bonus.Which of the following is true of this case?

• A)It will be enforceable in court because it is a gift promise.
• B)It will not be enforceable in court because of past consideration.
• C)It will not be enforceable because the president is not authorized to make such a promise.
• D)It will not be enforceable because it is an unlawful consideration.

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Definitions:

Profitability

The ability of a business to generate earnings compared to its expenses and other costs incurred during a specific period.

Operating Cycle

The duration of time it takes for a company to buy inventory, sell it as finished goods, and collect cash from the sales.

Credit Sales

Sales made by a business where payment is delayed, allowing the customer to pay at a later date.