H Owes C $700

question 43

Multiple Choice

H owes C $700.00.By agreement between H and R,R promises to pay this debt in return for H's undertaking to convey a house to him.C now sues R on his promise.In this situation

• A)there is no contract between H and C.
• B)there is a contract between H and R.
• C)privity of contract prevents C from succeeding.
• D)there is no contract between R and C.
• E)all of the above

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Definitions:

Common Stock

Equity ownership in a corporation, with rights to share in its profits, and typically with voting rights in corporate governance.

Paid in Excess

A financial term referring to amounts paid over and above the nominal or par value of a security at the time of issuance.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.