The Presumption That an Agreement Made in a Social or Domestic

question 34

Multiple Choice

The presumption that an agreement made in a social or domestic context was not intended to be legally enforceable can be rebutted by:

• A)Severing the friendship with the other party to the agreement
• B)Issuing legal proceedings against the other party to the agreement
• C)Proving that the other party to the agreement is unreliable and not trustworthy.
• D)Proving to the court that the parties intended it to be a legally enforceable agreement.

---

Definitions:

Current Ratio

A financial metric indicating a firm's capacity to fulfill its short-term debts, which are obligations due within the next year, by dividing its current assets by its current liabilities.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the company's leverage level.

Inventory Turnover in Days

A metric that calculates the number of days it takes for a company to sell through its entire inventory, indicating the efficiency of inventory management.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets, excluding inventory.