Albert Entered into a Contract Under the Name of One

question 43

Multiple Choice

Albert entered into a contract under the name of one of his corporations.After consulting with his accountant regarding tax implications,he asked,and the other party agreed,to change the name of the company in that contract.What has transpired with respect to the contract between these parties?

• A) amendment
• B) novation
• C) assignment
• D) substitution

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Definitions:

Production

The process of creating, growing, manufacturing, or improving goods and services.

Total Variable Cost

The sum of expenses that vary directly with the level of production or output, such as materials and labor.

Total Fixed Cost

The sum of all costs required to produce a good or service that do not change with the level of output.

Marginal Revenue (MR)

The additional revenue that a firm receives from selling one more unit of a good or service.