A Minor Breach Is Most Directly Associated With

question 35

Multiple Choice

A minor breach is most directly associated with:

• A) strict performance
• B) tender of performance
• C) complete performance
• D) substantial performance
• E) inferior performance

Understand the methods and importance of horizontal and vertical analyses in evaluating financial performance and condition.

Comprehend the purpose and process of financial reporting for decision making.

Apply guidelines and rules-of-thumb in financial analysis.

Calculate and interpret changes and trends in financial statement items.

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Definitions:

Transferability

The ability of an asset or property right to be sold or otherwise transferred from one party to another.

Watered Stock

Shares issued by a company at a value much greater than its asset worth, inflating its apparent value without actual backing.

Fair Market Value

An estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Business Judgment Rule

A legal principle protecting corporate directors and officers from liability for decisions made in good faith and in the best interest of the company.