All Contracts Must Contain

question 27

Multiple Choice

All contracts must contain

• A) three parties who do not have legal capacity and a consideration supporting an enforceable promise.
• B) three parties who have legal capacity and a consideration supporting an enforceable promise.
• C) two parties who have testamentary capacity.
• D) two parties who have legal capacity.

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Definitions:

Vertical Analysis

A financial analysis technique that presents each item in a financial statement as a percentage of a base figure.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Vertical Analysis

A method in financial statement analysis where each line item is listed as a percentage of a base figure within the statement, allowing for the assessment of relative sizes and proportional changes over time.

Total Assets

The sum of all financial and physical resources owned by a business.