Compare and Contrast Reliability and Validity

question 73

Essay

Compare and contrast reliability and validity. Be sure to address the relationship between the two.

Understand the application and limitations of the postbox rule in contract law.

Recognize the enforceability and exceptions of various forms of contracts and promises, including gratuitous promises and charitable donations.

Discern the legal significance of the quantum meruit principle in contract breaches.

Grasp the distinction between void and voidable contracts.

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Definitions:

Net Acquisition

When there is a purchase and sale of assets (within the same asset class) in the same year, CCA is calculated on the capital cost of the new asset minus the lesser of the original capital cost or the net proceeds from the asset disposed.

Half-year Rule

The half-year rule is a tax regulation that allows only half the year's depreciation expense on newly acquired assets to be deducted in the first year.

Asset Class

A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.

Sensitivity Analysis

Indicates exactly how much net present value will change in response to a given change in an input variable, other things held constant. Sensitivity analysis is sometimes called “what if” analysis because it answers this type of question.