A(n)________ Is a Clause in a Contract in Which the Parties

question 9

Multiple Choice

A(n) ________ is a clause in a contract in which the parties specify certain events that will excuse nonperformance.

• A) approval clause
• B) novation agreement
• C) force majeure
• D) implied-in-fact condition

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Definitions:

Preference Dividends

Dividends that are paid to holders of preferred shares, typically at a fixed rate, before any dividends are paid to common shareholders.

EPS

Earnings Per Share, a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Directors' Declaration

A statement by the company's directors asserting the accuracy of the financial statements.

Auditor's Report

A formal opinion issued by an auditor based on an audit of a company's financial statements, indicating whether the statements are free from material misstatement and accurately represent the company's financial position.