Vera Has a Key Supplier for Her Business Who Was

question 27

Multiple Choice

Vera has a key supplier for her business who was facing cash flow problems which would impair Vera's ability to get shipments of key components for her production.Vera made a $10,000 loan to the supplier.Unfortunately the supplier filed for bankruptcy and has gone out of business without repaying Vera.Vera will be able to recognize a loss of

• A)$10,000.
• B)$3,000.
• C)$7,000.
• D)0)

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Definitions:

Breach of Contract

The violation of a legal agreement between parties, where one party fails to fulfill their promised obligations, leading to legal consequences.

Tort

A civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Gas Main

The primary pipeline through which natural gas is transported to residential, commercial, or industrial premises.

Legislation

Laws that have been promulgated (enacted) by a government body.