Lynn,a Tailor,agrees to Sew a Pair of Drapes for Zach's

question 27

Multiple Choice

Lynn,a tailor,agrees to sew a pair of drapes for Zach's living room.Zach promises to pay Lynn $300.Lynn completes the drapes using material selected by Zach,but Zach is not satisfied and refuses to pay for them.In this case:

• A) whether Zach will have to pay for the drapes depends upon whether as a reasonable man he ought to be satisfied.
• B) the standard applied here is a subjective standard of satisfaction.
• C) the doctrine of frustration of purpose applies.
• D) the condition of satisfaction is an express condition.

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Definitions:

Operating Cash Flows

Cash generated from the core business operations of an entity, excluding financing and investing activities.

Total Liabilities

The combined debts and obligations that a company owes to entities outside of the company.

Cash Flow From Operations

The net amount of cash generated by a company's normal business operations.

Accounts Receivable Turnover

A measure of how efficiently a company collects credit sales, calculated by dividing net credit sales by the average accounts receivable.