Ralph Sold a Motel to Steve by Stating That He

question 32

Multiple Choice

Ralph sold a motel to Steve by stating that he had paid $250,000 for it and that his net average annual profit from the business has been $40,000.In reality he paid $100,000 for the motel and has earned a net average annual profit of only $30,000.Steve made no attempt to verify the statements until after the transaction was completed.In this case:

• A) Ralph has committed fraudulent misrepresentation and the contract is voidable at Steve's option.
• B) Steve is bound by the contract,because he failed to verify the statements which were made to him.
• C) the contract is not voidable,but Steve may sue for damages.
• D) the contract is automatically void.

Comprehend the legal and financial distinctions between common and preferred stock.

Identify the corporate governance structure and roles of key officers.

Understand the concept of limited liability in the corporate form.

Recognize the continuous and perpetual life of a corporation.

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Definitions:

Attach

The process of adding or linking files, documents, or other items to an email, message, or digital document, facilitating the sharing of additional information.

File

A container in a computer system used to store data or information, identifiable by a unique name and possibly an extension indicating its type.

Email Address

A unique identifier for an email account that allows messages to be sent and received.

Signals

Signals are forms of communication or indicators that convey information, often used in electronics and communication systems to transmit data.