The Voluntary Transfer of a Contractual Right to a Third

question 38

Multiple Choice

The voluntary transfer of a contractual right to a third party is known as a(n) :

• A) implied warranty.
• B) assignment.
• C) delegation.
• D) novation.

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all income and expenses (operating and non-operating) except interest and income tax expenses.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations, indicating its ability to pay bills and fund investments.

Capital Spending

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve its operations and revenue.

Operating Cash Flow

The cash generated from the normal operating processes of a business, reflecting the company's ability to generate sufficient cash to meet its operating expenses.