There Is No Contract Unless Each Party Intends to Enter

question 47

True/False

There is no contract unless each party intends to enter into a contract.

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Definitions:

Simple Capital Structure

A company's capital structure that consists only of common shares or straightforward debt without complex financial instruments such as convertible securities.

Diluted Earnings

Earnings per share calculated using the total number of shares that would be outstanding if all possible sources of conversion, such as convertible bonds and stock options, were exercised.

Basic Earnings

The net income available to common shareholders, divided by the weighted average number of common shares outstanding.

Weighted Average

A calculation that takes into account the proportional relevance of each component, rather than treating them equally.