Which of the Following Is an Example of a Contract

question 26

Multiple Choice

Which of the following is an example of a contract that would be governed by legislation and NOT by common law?

• A) a contract involving the sale of goods governed by the Sale of Goods Act
• B) a contract involving the supply of services governed by the Employment Act
• C) a contract retaining a lawyer to perform legal services on behalf of a client
• D) a verbal contract involving an exchange of services for a set monetary price

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Definitions:

Cash Dividends

Profit distributions paid out by a corporation to its shareholders.

Net Income

The company's overall earnings following the subtraction of all costs, taxes, and expenses from the total income.

Investing Activities

Transactions related to the acquisition or disposal of long-term assets and investments, usually reflected in the investing section of the cash flow statement.

Marketable Securities

Financial instruments that can be easily converted into cash due to their highly liquid nature, typically including stocks and bonds.